Oil markets face growing stress on Middle East war: Morgan Stanley

Morgan Stanley said the global oil market is facing intense pressure due to military tensions in the Middle East, Bloomberg reported.

It noted that rising prices reflect an unprecedented rush by buyers to secure prompt supplies.

Buyers are “paying an exceptional premium for secure, refinery-usable Atlantic Basin barrels available now,” analysts said in a note dated April 7.

“That does not mean the futures market is broken. It just means that different parts of the complex are pricing different combinations of immediacy, tightness and expected persistence,” they added.

As a result, dated Brent—the key benchmark for physical cargoes in the North Sea—surged past $140 per barrel, its highest level since 2008. Despite June futures rising to around $108, they have lagged the sharp gains seen in the physical market.