Ryan Adams

They're pretty liquid generally, right?

They're pretty liquid.

There is a divergence.

Usually the spread between WI and Brent is about $2 to $5 a barrel.

Right now it's clocking in at $17.

And so that spread- The divergence is $17.

The divergence is $17.

So Brent is $17 more expensive than North American WTI.

Okay.

And that's just telling you the North American oil market is just insulated.

It's the oil from Canada.

It's the oil produced here in the United States.

It's oil from LATAM countries.

None of that is relevant to the Strait of Hormuz or all the conflict.

And so you're seeing the price of stability in the WTI market and you're seeing the price of instability coming out of the Strait of Hormuz here.

Is that part of the story here?

That's absolutely part of the story.

A massive amount of asymmetry.

Iran doesn't even need to do much.

They just need to posture that they will attack ships going through the Strait of Hormuz because then the fallout, the secondary order consequences of that is that insurance companies