The Strait of Hormuz blockage ignites a fierce oil grab! North American crude oil premiums soar, making it the biggest winner in the global "oil shortage."

Zhitong Finance APP learned that, as demand for increasingly less available crude oil ramps up, the “spiderweb-like spread” of cracks in the global crude oil market is spreading to the Rocky Mountains and the U.S. Great Plains. From Texas and North Dakota to Alberta, crude oil grade differentials are surging as refiners, after being disrupted for weeks in shipping through the Strait of Hormuz, compete with rivals in Asia and Europe to secure crude oil.

According to prices from Modern Commodities, on Monday, Bakken crude oil traded on the Clearbrook Hub in Minnesota was at an $18 premium to the monthly average price of West Texas Intermediate, while the same grade was still at a $1.20 per barrel discount the day before the Middle East war broke out on Feb. 28.

BOK Financial Securities Inc. energy trading head Dennis Kiesler said: “It’s all about U.S. exports. We’re exporting a lot of crude oil, and that’s why the WTI crude oil price stays elevated.”

In Canada, synthetic crude produced by processing oil-sands bitumen trades at a $19.90 premium to WTI, versus a premium of about $1 a month ago. Mars crude produced from the U.S. Gulf of Mexico rose last week to about an $18 premium to WTI, then fell to about $17. Southern Green Canyon crude has kept a premium above $7 for five straight trading days.

Traders said that U.S. and Canadian crude is increasingly being drawn to coastal markets for export, tightening local spot supply.

The crude grades that did not surge on Monday were Western Canadian Select, the local benchmark in Canada. Based on data from Modern Commodities, driven by an increase in the volume of Venezuelan crude, the grade’s discount to the WTI monthly average widened from $14.65 to $16.25.