Related Articles
Forward article link
Share PDF with colleagues

Oil set for sweet-sour rebalancing

The unusual premiums sour grades have enjoyed over sweet may be coming to an end

An imbalance in sweet-sour crude supply has been a key feature of the oil market since 2017. But fundamentals and price spreads suggest the historically elevated value sour grades have held relative to sweet may finally get eroded. The altered sweet-sour dynamic over the last three years or more has been driven not only by Opec+ cuts and US sanctions on Iran and Venezuela, reducing the availability of sour grades, but also the growth of US shale, boosting supply of sweeter barrels—and transforming the quality of the marginal barrel entering the market. This imbalance has impacted trade flows, with growing US exports to Europe and Asia. And it has also disrupted price differentials, includi



{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}
Also in this section
Gas at the heart of Iraq’s transition
21 October 2021
While oil has grabbed the headlines for Iraq, tapping its gas potential could transform the country’s economic fortunes
Petrobras’ downstream dilemma
21 October 2021
President Bolsonaro considers privatising the NOC as fuel prices climb and divestments drag
Corallian seeks bidders
21 October 2021
The pre-production North Sea independent has put itself up for sale
Sign Up For Our Newsletter
Project Data
PE Store
Social Links
Social Feeds
Featured Video