Last Updated on April 10, 2026 by Deon
The Big Difference in Oil Prices: Why Real Oil is Selling Like Very Valuable Gold While Future Prices are Not Keeping Up
The oil market around the world is having a problem right now. If you just look at the prices on your computer screen you see one thing. But if you are a person who refines oil and you need to get a barrel of oil onto a ship you are in a very different and much more expensive situation.
According to a study by BNY there is a huge difference between the price of oil on paper which is what people use to buy and sell oil in the future and the price of real oil that you can touch. This is not a small difference it is a big shock that is changing the way people price energy.
The Big Price Gap: The Real Cost of Oil
The numbers from the North Sea are really surprising. While the price of Brent oil futures has been around 97 dollars the real price of oil the North Sea Forties Blend recently went up to 147 dollars per barrel.
When the price of oil is almost 50 dollars more than the price of oil in the future it is a big warning sign. It means that now people are desperate to buy oil immediately no matter the cost. The situation is so bad that some oil contracts even stopped trading for a while.
The Problem with the Strait of Hormuz
Why is this happening? It is because of the Strait of Hormuz. This narrow waterway usually handles 20 percent of the worlds oil.. Now because of increased tensions and Iranian control only 8 percent of the normal amount of oil is getting through.
To make things worse there is talk of a one dollar per barrel fee to pass through the Strait. This has already caused problems with Washington adding to the tensions that are making it hard to get oil from one place to another.
Many Things are Causing Oil Supply Problems
It is not the Strait of Hormuz that is causing problems. Many things are affecting the supply of oil:
* Saudi Arabia is producing 600,000 barrels of oil per day.
* Pipeline problems have stopped 700,000 barrels of oil per day.
For countries in Asia that rely heavily on these oil routes and suppliers the situation is very worrying. We are not just talking about oil we are talking about how hard it is to find oil to keep things running.
What Happens Next?
As we go into the weekend everyone is watching the talks in Pakistan. Traders and world leaders are waiting to see two things: a solution to the shipping problems in the Strait of Hormuz and a lasting ceasefire.
Until the flow of oil returns to normal the difference between the price on the screen and the price, at the pump will stay very big. In this market having a contract to buy oil is one thing. Actually having the oil is everything.
