The global oil market is currently in turmoil as traders and refiners engage in a desperate search for immediately available crude supplies. Following disruptions in the Middle East, prices for physical crude have skyrocketed, reaching over $140 a barrel in the North Sea, while futures contracts for June delivery fell to approximately $95. This disparity highlights the severe supply shortfall, with refiners willing to pay substantial premiums for prompt deliveries. For instance, some cargoes from Nigeria are being offered at $25 per barrel above benchmark prices. Asian refiners, particularly from Japan and China, are shifting their focus to alternative sources, including record oil exports from the US and increased purchases from Venezuela. The rising costs are causing smaller refineries to struggle with financing and operational challenges, leading to potential production cuts and further exacerbating shortages of essential products like diesel and jet fuel, which have also hit record prices. Analysts warn that if the futures market does not align with these physical realities, the US market could face severe shortages as well.