Free Trial
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.
OIL
US and North Sea crude benchmark prices have closely aligned in September with the differential equivalent to the USGC-Europe freight cost, according to Argus.
- In September, shipping a 0.7m bbl cargo of WTI to Europe has averaged $2.33/b, one cent higher than the average premium of the ICE second-month Brent futures contract over the Nymex front-month WTI this month.
- The Brent-WTI differential increasingly correlates with the cost of transatlantic freight for 90kt Aframax class tankers.
- It previously aligned with the smaller 70kt Aframax freight rates as standard US export cargoes were smaller before upgrades to port infrastructure in the USGC expanded capacity.
- Dated Brent also began incorporating WTI deliveries alongside local North Sea grades Brent in 2023. This has put downward pressure on the benchmark, as deliveries of WTI to Europe are over double the combined loadings of the North Sea grades.
Source: Argus
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok