Oil Shipping Costs Drive Prices $30-$40 Higher

The real price of oil is suggested to be $125 per barrel or higher due to increased delivery costs, according to energy insiders. While oil futures show a different figure, the cost of chartering very large crude carriers (VLCCs) for oil delivery has risen significantly. Recent charters from the U.S. Gulf Coast to Asia cost $76 million to $77 million, leading to a premium of approximately $38 per barrel over oil's market price. This trend reflects in rising stock prices of shipping companies.

The article also mentions an increase in the stocks of shipowners, which have risen due to these higher shipping premiums. However, it notes that even though oil volumes through the Hormuz Strait are returning to pre-war levels, the shipping costs show no signs of decreasing.

These developments matter for investors because they highlight how logistical costs can substantially influence the actual price paid for physical commodities like oil. Shell (SHEL), being a major player in global energy markets, has experienced a stock increase, reaching new highs amid bullish analyst sentiments.