Mumbai, Oct. 5 -- Physical crude oil prices could be significantly higher than benchmark rates as soaring shipping costs widen the gap between quoted and actual market prices, with a USD 100-a-barrel screen price potentially translating into nearly USD 145 per barrel, said Anindya Banerjee, Kotak Securities Head of Commodities Research.

In an interview with ANI, the analyst said the oil market has become increasingly complex, with different prices for the same product further complicated by rising shipping costs.

Noting that "VLCC freight rates have crossed USD 1 million, which roughly adds another USD 25 or more per barrel," he stressed, "...a price of USD 100 on the screen can effectively become nearly USD 145 in the physical market."...