European crude prices are surging as Asian refiners aggressively buy oil to replace Middle Eastern barrels lost to the war in the Middle East. Initially showing muted reaction, the European market is now feeling the ripple effects of Asian buying that has tightened global supply. Brent crude jumped above $91 on Friday to its highest level in almost two years.

Unlike Asian refineries, European refiners have limited direct exposure to Middle Eastern crude, typically purchasing local or US grades. However, the rush by Asian buyers to replace lost Middle Eastern barrels has tightened availability across the Atlantic Basin. Johan Sverdrup, a major North Sea grade, saw its premium to Dated Brent soar to $3.15 a barrel, the highest in two years, as refiners scramble to secure supplies.

Mediterranean grades have also rallied, with Kazakhstan's CPC Blend jumping to a slight premium for delivery to Augusta, compared with a discount of $3 to $4 last week. South Korean refiner GS Caltex Corp. and Japanese processors have recently purchased CPC Blend or US crude. While some Atlantic Basin supplies are selling strongly, West African sales for April loading are slower than normal due to high freight rates making shipments to Asia unattractive.