Medium sour crude values have found fresh support, following an announcement on April 22 that the US will end all waivers from Iran sanctions when they expire on May 2. May barrels of USGC sour crude benchmark Mars were heard talked between $4.80/b and $5.05/b above WTI cash in the morning of April 22 and then later heard traded at WTI plus $5/b, up from the previous assessment of WTI plus $4.55/b on April 18. Also on the day of the announcement, June barrels of Mars were heard trading at WTI plus $5.10/b on, up from over $4.70/b. The strengthening of USGC sour grades follows a general weakening trend in the market over the past several weeks as domestic refinery tastes continue to evolve to include an increased diet of light sweet crudes. “If you think about it, Mars is back to a more historical level,” one crude trader said. “Refiners are running more light sweet in cokers.” The differential for front-month US Gulf Coast benchmark Mars had fallen $3.55/b since hitting its strongest point in five years of WTI plus $8.10/b on February 14. Tightness in the sour crude market, as a result of OPEC crude production cuts, sanctions… continue reading
Continue reading US Gulf sour crudes rise on cancellation of Iran sanctions waiver. This article appeared first on CTRM Center.
Source: CTRM Center