Most of Brent's supply is sitting in tankers. If war broke out in the pacific all transatlantic and transpacific shipping routes could get closed. The arb from WTI to brent is predicated on getting molecules from the Gulf to the North sea. If those routes get closed, then the arb closes and Brent and WTI will dislocate. How do you think Brent use to trade $30 over WTI a few years ago? It was because the US could not export WTI out of the country.
but it was because of a self imposed ban not because of war. i agree that if something happens to the maritime routes wti/brent would decouple. that's why i mentioned the suez canal but i don't see why that would happen today.
yeah why not. imo if that situation materialized there will be plenty of clearer opportunities. no need for subtle stuff then. what's your take on why oil crashed till 28 the last time that happened?
So is $0 oil, which is ~$47 per bbl down from current price. So we have -$47 per bbl to get to zero, or +$47 per bbl to get us to ~$95. Which is it? I say bollocks all, and play with the $10 per bbl range between $43 and $53 you have been given over the past 9 months. Man if I just had the funds.