LONDON, Feb 23 Reuters Red Sea shipping delays and OPEC supply cuts are tightening physical oil markets in Europe and Africa as well as the Brent crude market structure, lending further support to oil futures prices, according to traders, LSEG data and analysts.

A sustained rise in crude prices would lift energy, transportation and manufacturing costs and threaten to unwind some of the recent falls in global inflation, just as major central banks are expected to begin cutting interest rates.

On Thursday, the benchmark Brent crude futures market structure hit its most bullish since October. The premium of the firstmonth contract to the sixmonth contract reached 4.34 a barrel. This structure, called backwardation, indicates a perception of tight prompt supply.

It looks like there has been a pickup in tanker diversions, which is making the crude balance tighter, said FGE analyst James Davis. Crude demand is high because of strong refining margins, despite refinery maintenance, he added.

More tankers are avoiding the Red Sea since Yemen39;s Houthis began drone and missile attacks against shipping in midNovember, saying they are acting in solidarity with Palestinians as Israel wages war on Hamas.

January average refining margins for diesel and gasoline in Europe rose to multimonth highs of 34.3 and 11.6 a barrel, respectively, Reuters calculations show.

U.S. crude is also in backwardation, with the strength of Brent and WTI taking the trading community by surprise…