The Hidden $40-Per-Barrel Cost Driving Oil Prices Higher
When Americans think about the price of oil, they usually focus on the number quoted every day in financial markets. If Brent crude is trading above $100 a barrel or West Texas Intermediate is near $100, those numbers become shorthand for whether oil is expensive or cheap. But that market price is o
Source: OilPrice.com
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DW NOTE
WTI at $103 with the Strait of Hormuz effectively closed — that's a $40 risk premium for a supply shock that's actually happening. Strip out the geopolitical premium and you're back to fundamentals that say oil should be trading in the low $60s. The real story isn't hidden costs driving prices higher; it's that markets have priced in permanent disruption to 21% of global crude flows as the new baseline.