Physical Forties Crude Oil: $148.87
- Apr 15
- 3 min read
Source: Hal Turner
As of April 15, 2026, physical North Sea Forties (i.e. a "Barrel" of crude oil) crude prices hit a record high, approaching $150. per barrel, driven by extreme market tightness due to the Strait of Hormuz crisis and supply disruptions.
Yet, the general public is being told "Oil is below $100."
That's the Brent futures price for June delivery. A financial contract.
(The Forties Oil Field is the second largest oil field in the North Sea, after the Clair oilfield, which is located 110 miles east of Aberdeen.)
Physical Forties crude (actual barrels, prompt delivery), hit $148 this week, an all-time record. Those are the prices refineries and traders are actually paying in the real world.
That's a $50 gap between the headline price and the physical price.
The dislocation between the paper oil price and the physical oil price has never been greater. The US Interior Secretary confirmed the government has discussed using futures market intervention to suppress oil prices.
This price surge represents a massive barrel premium over futures, with physical cargo availability restricted by high demand from European and Asian refiners seeking alternatives to Middle Eastern oil.
Record Highs: Physical Forties reached $148.87 per barrel on April 13, 2026, breaking previous records, according to LSEG data.
Market Drivers: The surge is caused by panic over immediate supply shortages following the effective closure of the Strait of Hormuz since late February 2026.
Physical vs. Futures: While Brent crude futures are down, physical cargo prices are significantly higher, indicating intense strain on spot market availability.
About the Crude: Forties is a significant light, sweet blend, part of the Brent complex and transported through the 169-kilometer Forties Pipeline System (FPS) from the North Sea to Cruden Bay, Scotland.
Market Impact: The high cost for immediate, physical delivery is forcing refiners to scramble, with European markets particularly affected.
A little about Forties
As of April 2026, North Sea Forties crude oil has hit record highs, with physical cargoes surging near a barrel due to a severe supply shock following the blockade of the Strait of Hormuz. As a vital, light, sweet, and low-sulphur blend, it is a key component in the Brent benchmark system, serving as a critical alternative for European refiners.
Key Aspects of Forties Crude Oil
Price Shock: As of April 13, 2026, the absolute price of North Sea Forties crude surged to
per barrel, surpassing the previous record from 2008. This surge is driven by a supply shock in the Middle East.
Market Impact: The high price of physical Forties crude indicates that the marginal supply of Atlantic crude has reached an inflexible ceiling, unable to bridge the gap from a 10 million bpd loss in the Strait of Hormuz.
Benchmark Role: The Forties Pipeline System (FPS) is a crucial North Sea network operated by INEOS, transporting around 50% of U.K. oil production and influencing the Brent futures contract, which is the benchmark for global oil prices.
Declining Field: The Forties Oil Field itself, discovered in 1970, is the second largest in the North Sea after Clair. While, and the field has experienced a natural decline.
Operation: The Forties Field was bought from BP by Apache Corporation in 2003. The pipeline system connecting this and other fields, operated by INEOS, was in 2017 projected to be viable until the 2040s.
