“Paper” Oil Versus Actual Oil – The Market Has Broken; Two Wildly Different Prices for Oil

• “Paper” Oil Versus Actual Oil – The Market Has Broken; Two Wildly Different Prices for Oil
  by https://halturnerradioshow.com/
  The real-life price of a Barrel of Oil has now disconnected from the “paper” oil-trading markets.  The paper markets are pricing oil at $94-$106 a barrel, but to get actual DELIVERY is costing $131 – $157 a barrel!
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  The charts say oil is at $94-$106/barrel. However, here’s the real prices:
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  – WTI paper: $94.23
  – Brent paper: $106.47
  – Dubai: $131.82
  – Oman: $157.15
  -Bunker fuel: $132.91  (Used by large ocean-going ships)
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  Do you see the problem? That’s a 25% – 67% divergence between the paper price and the physical clearing price. In a healthy market, arbitrage would close that gap fast. The paper market is lagging reality. Now look at the mechanism.
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  Paper oil is still far below physical because East of Suez is trading real shortage, freight stress, and delivery risk, while the West is still staring at futures screens and pretending the system can rebalance cleanly.
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  When Oman clears at $157.15 and Dubai at $131.82, while WTI sits at $94.23, the market is no longer pricing one oil story.  It’s pricing TWO different worlds.
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  One world is paper.
  The other is survival.
  Now do the math.
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  read more.

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