Disparity Between Oil Futures and Physical Market Prices Highlighted in Sri Lanka
Oil futures are trading below $90 per barrel, but in the physical market, buyers in Sri Lanka are paying as much as $286 per barrel for prompt crude. This highlights the significant gap between futures prices and actual delivery costs, driven by high freight, insurance, and scarcity premiums. HSBC CEO Georges Elhedery emphasized the disconnect between headline oil prices and real-world costs.
Topics: futures market geopolitical impact oil prices physical market supply conditions