The Real Price Of Oil Is Not What You Think

Physical oil is trading at $112/barrel, a $17 premium to paper oil, signaling acute supply stress amid the ongoing U.S.–Iran conflict. The closure of the Strait of Hormuz has caused an unprecedented breakdown in the global energy supply chain, implying a severe shock to crude availability and broader energy markets.

Analysis

Physical oil is trading at $112/barrel, a $17 premium to paper oil, signaling acute supply stress amid the ongoing U.S.–Iran conflict. The closure of the Strait of Hormuz has caused an unprecedented breakdown in the global energy supply chain, implying a severe shock to crude availability and broader energy markets.