Refiners feel heat physical crude trades higher than futures prices

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India’s oil refiners are paying significantly more for physical crude than the futures prices making headlines, as constrained Gulf supplies keep the physical market tight. Brent spot prices averaged about $12 a barrel above November futures between September 1 and 22, with the gap widening to as much as $22. Refiners’ actual costs are driven by physical-market benchmarks, grade differentials and contract terms rather than headline futures prices alone.