Gap between futures and physical oil prices hits widest level in 20 years

The oil price you see on Google is lying to you

The widely quoted Brent crude price sits around $102 a barrel

But if you actually needed a tanker full of oil delivered right now, you’d be paying close to $145, a record, and more than double what it cost before the war started

The gap between the two prices is now the largest in 20 years, and even energy analysts say they can’t fully explain it

What they do agree on is that the futures market has completely lost touch with reality on the ground

Around 10% of the world’s oil supply is still trapped in the Persian Gulf. Gas stations in Vietnam and Thailand have turned customers away. Sri Lanka made Wednesdays a public holiday to cut fuel use

The war looks manageable in the headlines, but the spot market tells a completely different story

Source: New York Times