Markets

As producing nations try to walk the tightrope of meeting (and profiting from) recovering oil demand but not pushing prices high enough to encourage more output from non-OPEC+ countries, announcements regarding Sept.

Futures prices for US, European, and Middle Eastern crude benchmarks were extremely volatile in April as the novel coronavirus slashed worldwide oil demand.

Saudi Arabia and Iraq raised their Official Selling Price (OSP) differentials for heavy grades to Asian customers by $5.60/bbl, bringing the price on Arab Heavy up to a 10¢/bbl discount to DME/Dubai averages and the price for Basra Heavy to 60¢/bbl below the benchmark.

Saudi Arabia raised its Official Selling Price (OSP) differential for Arab Heavy to Asian customers by $1.70/bbl, bringing it up to a $5.70/bbl discount to DME/Dubai averages.

Cracking margins at the US Gulf Coast (USGC) for Mars jumped out of negative territory in Feb.

Saudi Arabia cut its Official Selling Price (OSP) differential for Arab Heavy to Asian customers by $2.95/bbl, bringing it down to a $7.40/bbl discount to DME/Dubai averages.

Cracking margins at the US Gulf Coast (USGC) for Mars remained negative in Jan.

The US, European, and Middle Eastern benchmarks spent the quarter on a downward slope after 4Q 2020 had seen futures prices rise by 12-14%.

Saudi Arabia cut its Official Selling Price (OSP) differential for Arab Heavy to Asian customers by $5/bbl, bringing the OSP down to a $4.45/bbl discount to DME/Dubai averages.

Cracking margins at the US Gulf Coast (USGC) for Mars plunged to a seven-year low in Dec, while coking margins for the Argus Sour Crude Index (ASCI) and for 50/50 blends of Mars/Maya and of Light Louisiana Sweet/Heavy Louisiana Sweet were at ten-month lows.