Are we referencing the wrong oil futures benchmark?
The impact of the Iran War is being measured by Brent crude futures even though Brent measures the wrong kind of crude and is of Atlantic Basin oil sources used in the West.
Persian Gulf oil that passes Hormuz is heavier oil and its consumers are primarily in Asia.
The more representaive crude oil futures benchmark is therefore Dubai Platts
https://www.investing.com/commodities/dubai-crude-oil-platts-futures
Needless to say the Dubai benchmark show higher prices
If the closure continues Brent will catch up as inventories in the Atlantic fall
Is Brent the right crude oil price benchmarch?
byu/Phase3Investor inoil
Posted by Phase3Investor