Introduction

Price data showed that the price gap between US low-sulphur and high-sulfur crude narrowed significantly this month amid strong demand for high-sulphur crude from refineries and exporters and limited supply.

Louisiana Low Sulfur and High Sulfur Mars

The difference between Louisiana Low Sulfur and High Sulfur Mars, both of which are sold in Louisiana, narrowed to $1.70 a barrel last week from about $6.75 a barrel at the start of the year and 9 .20 dollars a barrel a year ago. .

Buyers Flock to High-Sulphur Crude

Buyers from around the world are expected to flock to high-sulphur crude as Saudi Arabia, the world\’s largest oil exporter, intends to cut its total production by one million barrels a day starting next month.

Saudi Oil Grades

Most Saudi oil grades, such as Arab Light, Medium and Heavy, are high in sulfur. In addition to cutting production, Saudi Arabia also raised its official selling price for Asia for July to its highest level in six months.

US Gulf Coast Refineries

US Gulf Coast refineries are ramping up crude oil processing to meet strong domestic fuel demand. These refineries also typically process high sulfur crude from offshore fields in the United States, western Canada, and Latin America.

Europe Increases Imports of Sour Oil

Europe has increased imports of sour oil after the Russian invasion of Ukraine restricted the flow of Russian Urals medium-sour oil.