North Asian refiners are set to test a new US crude oil grade that some have touted could be a replacement for Iranian barrels, traders said. Samples of US West Texas Light crude or WTL, which has an API of between 45 and 55, were heard to have been sent out to North Asian refiners, they added. Depending on results, and global appetite, the US Gulf Coast will be exporting many more cargoes of WTL in the future. WTL is the name for production in the Permian basin that exceeds the API spec range for a barrel of West Texas Intermediate delivered at the Magellan East Houston (MEH) Terminal at the Gulf Coast. A barrel of traditional WTI typically ranges between 38-44 API and the BridgeTex and Longhorn pipelines cap WTI specifications at 44 API. However, as new production in the Delaware section of the Permian Basin ramps up, the overall quality of domestic crude is getting lighter and sweeter and the opportunity to begin marketing the lighter crude coming out of the Permian has evolved. “This crude can be considered for both splitter and CDU and it could be an alternative for Iran [barrels] with the US sanctions,” said… continue reading
Continue reading New US crude grade offers potential alternative to Iranian barrels. This article appeared first on CTRM Center.
Source: CTRM Center