Premium'Paper' Vs 'Physical' Primer: Morgan Stanley Answers Everything You Wanted To Know About The Oil Complex But Were Afraid To Ask
Dated Brent - the most important indicator of supply/demand for real 'physical' barrels of oil - hit a new record high overnight above $144/bbl, while front-month ICE Brent traded at $109/bbl.
With everyone now a sudden expert in global oil markets (inventories, supply chains, and chokepoints etc.), this unprecedented gap prompted Morgan Stanley to create a short primer on the Brent complex, not 'real' versus 'paper' oil, but where scarcity shows up first and why prompt barrels now trade at such a premium...