The world's oil supply just dropped 12-15 million barrels per day - the biggest disruption in history. Traders who worried about oversupply six weeks ago now worry about running out.
Dated Brent crude hit $141.26 per barrel last week - the highest since 2008. Saudi Arabia is charging record premiums: $19.50 extra to Asia, up to $30 above Brent to Europe.
They're charging this much because buyers have no other options. Vikas Dwivedi from Macquarie said: pricing physical oil during a supply shock is "more art than science."
Jet fuel prices doubled in one month. United Airlines cut 5% of its schedule. Some Italian airports introduced fuel limits.
Myanmar and Bangladesh are rationing fuel. China, Thailand, Pakistan, and South Korea have restricted exports. Andy Lipow warned: if this continues, we will run out of fuel.
Watch Saudi Arabia's premium - if it keeps rising, supply is tighter than markets think. The shortage is here.
