Crude: Refiners Chase Sweet Spot Barrels to Catch High Margins

Copyright © 2023 Energy Intelligence Group All rights reserved. Unauthorized access or electronic forwarding, even for internal use, is prohibited.

Sweet crude is in high demand and the market for it is getting tight as $90 Brent testifies. Unlike previous Covid strains, Omicron has left global demand mostly unscathed, and refiners are now scrambling for feedstock to refill their product inventories. This market is not short of crude overall, but there is a quality mismatch between highly desired lighter, sweeter grades and more widely available heavy, sour crude.

Oil Spot Markets, Crude Oil, Oil Prices
Wanda Ad #2 (article footer)
Now that the war premium has evaporated on ongoing Russian supplies, Brent's $75/bbl doesn't look outrageous based on fundamentals.
Tue, May 23, 2023
The market seems to think Opec-plus' moves will be drowned out by sluggish demand and rising non-Opec supply.
Tue, Jun 6, 2023
Opec-plus ministers will meet this weekend to decide if recent price falls warrant further output cuts.
Fri, Jun 2, 2023