Oil Market Stress Threatens Shortages in Asia, Europe

Paul Sankey says the global physical oil market is under stress, creating a clear divergence between paper futures and physically deliverable cargo. He points to logistics, storage and deliverability frictions as drivers of the premium/discount between prompt physical barrels and futures, which could support near-term strength in cash crude and widen spreads for immediately available cargo.

Analysis

Paul Sankey says the global physical oil market is under stress, creating a clear divergence between paper futures and physically deliverable cargo. He points to logistics, storage and deliverability frictions as drivers of the premium/discount between prompt physical barrels and futures, which could support near-term strength in cash crude and widen spreads for immediately available cargo.