Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
Click Here for 150+ Global Oil Prices
India’s Fuel Consumption Climbs Even as LPG Supplies Tighten
Guyana is approaching 1 million…
Charles is a writer for Oilprice.com
The premiums for U.S. West Texas Intermediate crude have soared in the spot market to a record high of between $30 and $40 per barrel above key regional benchmarks as Asia and Europe scramble for supply amid the de facto closure of the Strait of Hormuz.
WTI Midland is being offered for July delivery in north Asia at premiums of between $30 and $40 per barrel, depending on the benchmark against which they are marked, trading sources told Reuters on Monday.
With most of the Middle Eastern supply still trapped at Hormuz and all Gulf producers slashing upstream production in response to the closed Strait, competition for barrels from other producers has become fierce and has pushed premiums higher and higher.
WTI Midland is offered to North Asia at a premium of $34 per barrel over the Dubai benchmark, a trader told Reuters. Another trade source said there are also offers of WTI Midland priced $30 per barrel above Dated Brent. There have been offers at nearly $40 a barrel above ICE Brent for August delivery, additional sources told Reuters.
The offers for spot WTI Midland have jumped in recent days from around $20 per barrel premium for cargoes sold at the end of March.
U.S. crude has become prized oil supply in the absence of free flows from the Middle East. As a result, the price of the WTI Crude futures benchmark soared past Brent Crude futures at the end of last week.
WTI Crude rarely trades at a premium to Brent. Brent crude reflects seaborne crude and typically leads during global supply shocks, while WTI crude is usually discounted. The current inversion points to a breakdown in normal pricing signals tied to physical flows.
The prompt monthly spread for WTI futures has flashed backwardation for weeks. But last week the backwardation, the sign of tight immediate supply, surged to record levels — signaling immediate demand for secure, deliverable barrels.
By Charles Kennedy for Oilprice.com
More Top Reads From Oilprice.com
Join the discussion | Back to homepage
Energy Shock Prompts Analysts to Cut India's GDP Growth Forecasts
Qatar's LNG Exports Still Frozen as Two Tankers U-Turn at Hormuz
Charles is a writer for Oilprice.com
Oil Prices Drop as the G7 Considers Releasing Up to 400 Million Barrels
Oil Prices Ease As US Pulls Out All Stops To Secure Supply
Japan’s JERA Cancels Long-Term LNG Deal With Commonwealth
Oil Prices Surge Past $100 as Iran Names New Supreme Leader
Chinese Oil Giants Rethink Iranian Crude After US Waiver
What Happens If Gulf Producers Deploy ‘Nuclear Option’ To End Middle East War?
Russia Is Losing Its Grip on Central Asia’s Power Sector
A New U.S. Facility Could Break China’s Grip on Critical Materials
Trump’s Iran Uranium Dilemma Raises Stakes for Oil Markets
The materials provided on this Web site are for informational and educational purposes only and are not intended to provide tax, legal, or investment advice.
Nothing contained on the Web site shall be considered a recommendation, solicitation, or offer to buy or sell a security to any person in any jurisdiction.
Merchant of Record: A Media Solutions trading as Oilprice.com
Source: Oilprice
