The global chasm in crude oil quality supply shows no signs of narrowing, prompting refiners to lighten their slate and leading to a market awash with gasoline , naphtha and LPG.
New restrictions next year on the amount of sulfur in global marine fuels may mean refiners buy even more US shale oil , but this may not put an end to a saturated light ends market. Much hinges on demand.
The meteoric rise in US production over the past decade —
almost doubling to record highs of around 12 million b/d — shows little sign of
slowing in the near term.
As light sweet US shale floods the market, producers of
heavier, more acidic varieties have been cutting back due to OPEC-led output
cuts to the tune of 1.2 million b/d.
US sanctions on key exporters like Venezuela and Iran haveRead More »