US crude oil exports disrupt European and Asian pricing: Reuters

Rising crude oil exports from the US are exerting downward pressure on European and Asian oil prices, acting as a counterbalance against production cuts and embargoes on Russian oil.

• According to Reuters, the inclusion of WTI into Platts Dated Brent Benchmark has both encouraged rising exports, but also helped cap Brent and related prices.
• Out of 61 Dated Brent assessments to July 27 where WTI was included in the pricing, the US grade was the most competitive in half of those days, and among the most competitive in all but one, effectively setting the price for the benchmark.
• This growing importance of WTI in Brent has impacted other physical crude grades which have to price themselves lower to compete with WTI.
• The pressure has extended to Asia and the Middle East, where grades of similar density to WTI are experiencing downward pressure due to the rising exports. Additional US exports have also somewhat eased the loss of supply following Saudi Arabia’s voluntary production cuts of 1m b/d.