Updated

Financial analyst Brian Sullivan highlighted that the real economic cost of crude oil delivery significantly exceeds the headline spot price, with physical oil capable of costing an additional $30 to $40 per barrel when accounting for elevated tanker rates. The analysis underscores the impact of shipping bottlenecks and vessel availability on the effective cost of crude for refiners and end users, a factor not always reflected in futures prices. The divergence between spot prices and actual delivery costs has expanded amid geopolitical tensions and increased demand for energy shipping capacity.