Mar. 16 at 10:55 PM
$TPET $EONR $SLB In a "calm" market, WTI is typically cheaper than Middle Eastern oil (like Oman/Dubai) by about
$3.X to
$5 because of the cost to ship it across the Atlantic...The Historical "Gap" (The Normal Rule)
WTI (North America): High-quality, "light sweet" crude. Usually trades at a discount to Brent and Oman because it's landlocked in Oklahoma.
Oman (Middle East): The "Workhorse" grade for Asia. It usually tracks Brent closely.
Normal Spread: If Oman is
$73, WTI is typically around
$69.X–
$70.
2. The Current "Fracture" (
$38.35 Spread)
Right now, the spread has gone from "Normal" to "Impossible."
Oman Physical:
$134.75 (as of this afternoon's update).
WTI Paper (Current):
$96.40.
The Spread:
$38.35.
The Meaning: This is the "Gold" scenario The Physical price in the Middle East is nearly
$40 higher than the Paper price in New York. This only happens when the paper market is completely ignoring a physical reality—in this case, the Strait of Hormuz blockade.
