Falling crude imports to Texas have tightened the regional sour crude market, boosting the assessed price differential of US Gulf of Mexico grade Southern Green Canyon. The medium sour crude, with an average API gravity of 29.9 degrees and typical sulfur content of 2.16%, is deliverable into Texas City and Port Arthur via the Cameron Highway Oil Pipeline System. The assessed value of SGC has recovered by $7.05/b since hitting a 17-month low July 23 of WTI cash minus $2.65/b. On Friday, the grade was assessed at a $4.40/b premium to WTI cash. Combined crude imports into Texas for November from Brazil, Colombia, Ecuador, Iraq, Mexico, Saudi Arabia and Venezuela are down nearly 7.352 million barrels from November 2017 levels, according to data from Platts Analytics and US Customs. A total of 38.748 million barrels of crude arrived from the seven countries in Texas in November 2018, versus 46.1 million barrels for the comparable time period the year prior. Imports of predominantly sour crude from Saudi Arabia have fallen about 2.2 million barrels year on year, totaling 9.246 million barrels for November. Crude volumes from Venezuela into Texas dropped to 5.173 million barrels in November, about 464,200 barrels fewer than… continue reading
Continue reading In the LOOP: SGC rises on falling crude imports to Texas. This article appeared first on CTRM Center.
Source: CTRM Center