Dated Brent tops $120 as physical squeeze diverges from ICE futures

Physical Dated Brent surged above $120 while ICE Brent slipped to $101, signaling a severe physical market squeeze driven by European diesel stock releases, drone attacks on tankers in the Strait of Hormuz, and China's reinstated refined product export ban. The divergence between physical and futures prices indicates acute near-term supply tightness that may not be fully reflected in paper markets, raising risks of further volatility and potential policy responses.