Energy insiders say the real price of oil is around $125 per barrel, well above the quoted futures prices. Physical delivery costs have surged dramatically: VLCC charter rates from the U.S. Gulf Coast to China and South Korea hit $76 million and $77 million respectively, ten times higher than less than a year ago, adding roughly $38 per barrel to the oil price itself. Terror attacks near Riyadh airport killed at least 14 people and injured more than 300, including travelers and energy professionals attending the World Petroleum Council conference. On the market side, Shell hit a new high this week, Morgan Stanley is bullish on refiners due to the diesel shortage spreading to gasoline, and ConocoPhillips has a $152 target representing more than 20% upside potential.
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