Why Physical Oil Trades Above Paper Oil

Why Physical Oil Trades Above Paper Oil

I doubt that "energy analyst experts" can't explain why physical crude oil is trading above CDFs, but I will:

Physical trades above paper, because there is a physical supply shock. Economic downturn expectations put negative pressures on oil futures. This is similar in principle to what happened with gold & silver a few weeks ago. Basis drift is a common occurrence. This drift is bigger during shocks, like what is occurring now.