- Energy Aspects founder Amrita Sen says futures are disconnected from Middle East fundamentals and physical crude should trade closer to $150 a barrel.
- Brent crude held above $100 a barrel as attacks on tankers in the Strait of Hormuz surged in the past week, threatening the rebound in Middle East supply.
- Record freight costs of about $80 million per cargo from the U.S. Gulf Coast have shut the arbitrage to Asia, pushing refiners toward Middle East and South American barrels.
Quotes
“There is really not quite enough shipping to go around”
“Futures prices are just struggling to price in what the true fundamentals are”