00:00Remember, we had two different prices going on at the same time.
00:02We had the Brent, the futures price, which was always saying, well, this is going to end and prices are
00:08going to come down.
00:09And then there was the dated Brent, the near term, which said we are having a major dislocation.
00:14Prices are really going up and we'd never seen that dislocation on that scale before.
00:18It was like two different visions of the world almost.
00:21So actually, why don't you – I've read like 10 explainers on some of these gaps between the front month
00:27price and the dated Brent or the, quote, physical price, et cetera.
00:32But what was it – how were you at the time thinking about this gap?
00:36Was it as simple as the market simply does not believe that the –
00:40Well, I did the difference between how the financial markets, which were processing things like statements by the president, statements
00:47from Iran and so forth, looking at the future.
00:50And the way the physical market, the industry market – and at Sierra Week, I remember one of the CEOs
00:57said in one of the dialogues that risk is being underpriced in the market.
01:01Because I think from the industry point of view, they saw there are major dislocations and those dislocations are playing
01:07out unevenly across the world.
01:10Asia hit the hardest, Europe feeling it, and then the U.S. mainly seeing it in terms of rising prices
01:17at the gasoline pump but no problem getting supplies.
01:19But in Asia, a big problem getting supplies.
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