Azerbaijani BTC Premium Jumps to Multi-Month Highs Amid Middle Eastern Tensions

The premium for Azerbaijani BTC crude has risen to multi-month highs of over $10 per barrel compared to dated Brent, according to recent data. This surge is attributed to escalating tensions in the Middle East and the Black Sea.

Azerbaijan's BTC crude exports are set to reach 15.7 million barrels in October, up from 15.1 million barrels planned for September. The increased demand is driven by Asian refiners buying aggressively on the spot markets due to a tightening supply of light-sweet oil from the Middle East.

The attacks on Middle Eastern maritime routes have raised fears about prolonged supply disruptions, pushing global crude benchmarks above $100 per barrel for the first time since mid-May. The recent drone attacks on Russian Black Sea port infrastructure have further disrupted rival trade flows and boosted demand for loadings from Ceyhan.