The premiums for U.S. West Texas Intermediate crude have soared in the spot market to a record high of between $30 and $40 per barrel above key regional benchmarks as Asia and Europe scramble for supply amid the de facto closure of the Strait of Hormuz.

WTI Midland is being offered for July delivery in north Asia at premiums of between $30 and $40 per barrel, depending on the benchmark against which they are marked, trading sources told Reuters on Monday.

With most of the Middle Eastern supply still trapped at Hormuz and all Gulf producers slashing upstream production in response to the closed Strait, competition for barrels from other producers has become fierce and has pushed premiums higher and higher.

https://oilprice.com/Latest-Energy-News/World-News/US-Oil-Premiums-Hit

These aren't US prices which currently will be more or less the same as future prices. Even if oil if fungible, in the short run the US capacity for shipping abroad is limited by tanker capacity. Of course, if the shortage continues, more tankers will be coming to the US which is actually bad news for Americans since US prices will begin to rise as demand from abroad captures more American crude.

3 hours ago, Alan Zweibel said:

The premiums for U.S. West Texas Intermediate crude have soared in the spot market to a record high of between $30 and $40 per barrel above key regional benchmarks as Asia and Europe scramble for supply amid the de facto closure of the Strait of Hormuz.

WTI Midland is being offered for July delivery in north Asia at premiums of between $30 and $40 per barrel, depending on the benchmark against which they are marked, trading sources told Reuters on Monday.

With most of the Middle Eastern supply still trapped at Hormuz and all Gulf producers slashing upstream production in response to the closed Strait, competition for barrels from other producers has become fierce and has pushed premiums higher and higher.

https://oilprice.com/Latest-Energy-News/World-News/US-Oil-Premiums-Hit

These aren't US prices which currently will be more or less the same as future prices. Even if oil if fungible, in the short run the US capacity for shipping abroad is limited by tanker capacity. Of course, if the shortage continues, more tankers will be coming to the US which is actually bad news for Americans since US prices will begin to rise as demand from abroad captures more American crude.

Believe it or not, there a some out there that do not understand that the price of oil is determined by an international market, and not by how much one country produces, unless subsidized by local governments.