DID Press: The price of physical Brent crude oil has climbed above $154 a barrel, reaching its highest level since records began in 1991. Meanwhile, the gap between physical Brent and Brent futures contracts has widened to more than $50 a barrel, reflecting mounting pressure on immediate oil supplies amid disruptions to shipping through the Strait of Hormuz and a shortage of oil tankers.
The surge has forced buyers seeking immediate oil deliveries to pay substantial premiums, highlighting the severity of supply constraints in the global energy market.
Physical crude prices reflect the cost of oil available for near-term delivery, while futures prices represent contracts for delivery at a specified time. The widening gap suggests that securing oil for immediate delivery has become significantly more expensive than buying futures contracts.
Disruptions to shipping through the Strait of Hormuz, a vital route for global energy supplies, and limited tanker availability have intensified competition among buyers for available cargoes.