The price that underpins real-world oil cargo transactions surged to its highest level since 2008. Dated Brent hit $141.37 per barrel, reaching an 18-year high.
Meanwhile, Brent crude futures traded near $107, still below 2022 levels. Thus, it’s clear that the benchmark for actual crude cargoes now trades more than $34 above Brent futures.
This isn’t just a price difference. It’s a stress signal. The physical oil market is under acute strain, with immediate demand far outpacing available supply.
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Recently, Chevron CEO Mike Wirth warned that futures are not reflecting the true scale of the oil supply disruption. He stated that the market is trading on “scant information” and “perception.” According to him,
Energy Aspects founder Amrita Sen also told CNBC that the futures market is obscuring the real stress.
Trump’s Shifting Stance Deepens Uncertainty
The Strait of Hormuz, which handles roughly one-fifth of global crude flows, has been closed for over a month. Gulf producers have cut output by at least 10 million barrels per day, as tanker traffic has dropped by 95%.
President Trump has sent conflicting messages on the Strait. In a prime-time address on April 2, he declared Iran “essentially decimated” and said the waterway would reopen “naturally” once the conflict ends.
Meanwhile, he told other nations they should “grab it and cherish it.” However, his shifting timelines and statements have layered uncertainity onto an already fractured supply picture.
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The post Paper vs. Physical: The $34 Gap Exposing the True Cost of the Iran Oil Shock appeared first on BeInCrypto.
Source: https://beincrypto.com/dated-brent-physical-oil-price-hormuz-crisis/
