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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL
Mexican export cuts and rerouting of Canadian crudes to the Pacific Coast are further limiting heavy crude supplies in the Atlantic, according to Reuters.
- This is driving up refinery costs with a likely knock-on effect to industries ranging from shipping to construction, to Middle East power plants.
- "The combination of tighter heavy crude and fuel oil supplies, as well as the seasonal rise in power generation demand is expected to push up fuel oil cracks in the weeks ahead," Vortexa analyst Xavier Tang told Reuters.
- USGC refiners have less supply from Mexico and are forced to pay more for Canadian barrels.
- Meanwhile, in Europe, the Argus Brent Sour index hit a 14-month high in mid-April.
- Heavy sour crudes are harder to refine and usually cheaper than light grades. Higher prices will be difficult for refiners who invested in costly upgrading units.
- Capitalising on abundant lighter crudes will be operationally and financially difficult.
Source: Reuters
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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