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US Crude Premiums Climb to Record Levels as Asia, Europe Compete for Supply
Spot premiums for U.S. West Texas Intermediate crude have jumped to all-time highs as competition between Asian and European refiners for supply heats up.
Apr. 6, 2026 at 1:39pm
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Spot premiums for U.S. West Texas Intermediate (WTI) crude oil have reached record-high levels as Asian and European refiners compete aggressively to replace Middle Eastern oil supplies disrupted by the Iran war. European refiners, typically the largest importers of U.S. crude, are now facing severe losses as they bid against Asian buyers for every available Atlantic Basin barrel, driving up costs and widening their profit margins.
Why it matters
The surge in crude oil premiums is putting severe pressure on refiners globally, including state-owned firms that are required by governments to keep producing fuel for national security. The competition for limited supply is driving up costs and squeezing profit margins for refiners on both continents, potentially leading to reduced crude runs and product shortages.
The details
Offers for WTI Midland crude delivered to North Asia in July on very large crude carriers had premiums of $30 to $40 a barrel, up from around $20 a barrel in late March and early April. In Europe, bids for WTI Midland delivered to the continent climbed to a record premium of close to $15 a barrel against dated Brent on Thursday. The jump in crude prices is being driven by wider discounts on U.S. crude oil compared with global benchmark Brent, which has spurred demand for tankers on the U.S. Gulf Coast, reducing vessel availability in the region and driving up freight rates.
- On April 3, Rystad Energy chief oil analyst Paola Rodriguez-Masiu noted the aggressive bidding by Asian refiners for Atlantic Basin crude supplies.
- On April 6, spot premiums for WTI Midland crude delivered to North Asia reached $30 to $40 a barrel, up from around $20 a barrel in late March and early April.
- On April 6, bids for WTI Midland delivered to Europe climbed to a record premium of close to $15 a barrel against dated Brent.
The players
Rystad Energy
An energy research and business intelligence company that provides analysis on the global energy market.
Paola Rodriguez-Masiu
The chief oil analyst at Rystad Energy.
Taiyo Oil
A Japanese refiner that purchased WTI crude in late March and early April.
What they’re saying
“At current physical differentials and freight rates, European refiners buying spot crude cannot make money running those barrels through their systems.”
— Paola Rodriguez-Masiu, Chief Oil Analyst
What’s next
Analysts will continue to monitor the global competition for crude oil supplies and the impact on refiner profitability in the coming weeks and months.
The takeaway
The surge in crude oil premiums is putting severe financial strain on refiners globally, forcing them to make tough decisions about reducing crude runs and product output at a time of heightened energy security concerns. The competition between Asia and Europe for limited Atlantic Basin crude supplies highlights the ripple effects of geopolitical tensions on the global energy market.
