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US Heavy Crude Premiums Soar to Decade Peaks Over Benchmarks
Liberty Check
- American energy dominance shields sovereignty from foreign chaos.
- Government green mandates risk economic vulnerability to adversaries.
- Unleash drilling to secure constitutional pursuit of prosperity.
U.S. Gulf Coast heavy grades surged Friday as Iran conflict curbed Middle Eastern production, driving buyers to American barrels.
Mars sour crude reached an $11 premium to WTI, highest since April 2020 and up $4 from Thursday, versus $1.50 last week.
Heavy Louisiana Sweet and West Texas Sour also rose; Brent hit $92.69, top since October 2023.
Strait of Hormuz closure cut Persian Gulf flows, forcing Iraq to limit output while Kuwait announced more cuts.
“Refiners that rely on these grades will need to find similar, or roughly similar, alternatives to replace the lost barrels, so Mars and other U.S. Gulf sour heavies and mediums are natural substitutes and are getting bid up aggressively.”
Kpler analyst Matt Smith said.
Buyers in Asia scramble for these barrels amid seasonal demand rise into driving season, per economist Tim Snyder.
“In the short term we will continue to see these grades rise until we see the Strait of Hormuz open up.”
Snyder said.
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