To the surprise of absolutely no one (except maybe those in the White House), a globally traded commodity is being traded globally based on global demand. There are there are considerably more incentives for American and foreign companies alike to sell oil overseas where scarcity is present, instead of to an already well supplied domestic market. This has resulted in American O&G exports to other U.S. coastal markets declining to 770,000 bpd in March, from 826,000 bpd in February, which will in turn push domestic prices up for American consumers.
As mentioned in the article:
>Asian and European oil markets have been hit hardest by the Middle East war, as Iran’s blockade of the Strait of Hormuz has cut off refiners in those continents from their regular crude and fuel exporters. As a result, U.S. refiners are reaping better margins sending fuel abroad than sending it within U.S. markets.
>European gasoil futures, used to price diesel in the region, traded north of $200 a barrel on Monday, compared to U.S. ultra-low sulfur diesel futures, the U.S. pricing benchmark, at under $185.
>”With incredible arbitrage opportunities involving various continents, I’m not sure when there might be a few vessels that could, say, bring Gulf Coast product to the Northeast,” said Tom Kloza, chief energy advisor to Gulf Oil.
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To the surprise of absolutely no one (except maybe those in the White House), a globally traded commodity is being traded globally based on global demand. There are there are considerably more incentives for American and foreign companies alike to sell oil overseas where scarcity is present, instead of to an already well supplied domestic market. This has resulted in American O&G exports to other U.S. coastal markets declining to 770,000 bpd in March, from 826,000 bpd in February, which will in turn push domestic prices up for American consumers.
As mentioned in the article:
>Asian and European oil markets have been hit hardest by the Middle East war, as Iran’s blockade of the Strait of Hormuz has cut off refiners in those continents from their regular crude and fuel exporters. As a result, U.S. refiners are reaping better margins sending fuel abroad than sending it within U.S. markets.
>European gasoil futures, used to price diesel in the region, traded north of $200 a barrel on Monday, compared to U.S. ultra-low sulfur diesel futures, the U.S. pricing benchmark, at under $185.
>”With incredible arbitrage opportunities involving various continents, I’m not sure when there might be a few vessels that could, say, bring Gulf Coast product to the Northeast,” said Tom Kloza, chief energy advisor to Gulf Oil.