“Fears that oil sanctions will cut supplies from Russia and Iran are disrupting the usual price patterns in the oil market on the US Gulf Coast, home to the country’s largest oil refining hub.”, — write: epravda.com.ua
Fears that oil sanctions will cut supplies from Russia and Iran are disrupting the usual price patterns in the oil market on the US Gulf Coast, home to the country’s largest oil refining hub. Bloomberg writes that the price of low-grade heavy oil, which usually trades at a discount to lighter Permian oil, is rising on fears of new sanctions. Permian high-grade oil has been quoted at the smallest premium to Canadian Cold Lake heavy sulfur since March 2022. The spread, now $4.25, has narrowed after the U.S. tightened sanctions against Russia and ports in China stepped up compliance controls, turning away vessels on the U.S. sanctions list and limiting shipments from countries such as Iran.Advertisement : According to market participants, the drop in prices is so sharp that Gulf Coast fuel producers are starting to buy more light oil.