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Heavier Crudes Finding Support in Asian Market

OIL

Heavier and more sulfurous crudes are fetching greater spot premiums in the Asian physical market as fuel oil cracks gain and diesel cracks slip.

  • Middle Eastern varieties that have medium-density and higher sulfur such as Oman and Upper Zakum are now fetching bigger spot premiums than grades like Murban according to Bloomberg.
  • OPEC+ cuts of heavier varieties have dented supplies while higher volumes of lighter grades by the US have pressed sweeter grades.
  • Daily supplies of medium and heavy-sour crude into Asia have declined by 920,000 barrels y/yin the first three months according to Vortexa.
  • Diesel has faced global demand weakness lately while fuel oil demand is ticking higher and Middle East power generation demand is set to support further.
  • Abu Dhabi has been keeping heavier grades to process domestically along with Mexico while Venezuelan sanctions will likely see less heavy barrels for US refiners.

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Heavier and more sulfurous crudes are fetching greater spot premiums in the Asian physical market as fuel oil cracks gain and diesel cracks slip.

  • Middle Eastern varieties that have medium-density and higher sulfur such as Oman and Upper Zakum are now fetching bigger spot premiums than grades like Murban according to Bloomberg.
  • OPEC+ cuts of heavier varieties have dented supplies while higher volumes of lighter grades by the US have pressed sweeter grades.
  • Daily supplies of medium and heavy-sour crude into Asia have declined by 920,000 barrels y/yin the first three months according to Vortexa.
  • Diesel has faced global demand weakness lately while fuel oil demand is ticking higher and Middle East power generation demand is set to support further.
  • Abu Dhabi has been keeping heavier grades to process domestically along with Mexico while Venezuelan sanctions will likely see less heavy barrels for US refiners.

Keep reading...Show less