Can Latin America replace Venezuelan exports?
- February 15, 2019
- 2165 views
Where will US Gulf Coast refiners find heavy sour barrels to make up for Venezuelan supply that have been a staple of their diet? That question shows the primary concern hasn’t been over the quantity lost as much as the quality lost. Attention has turned to Latin America because Brazil, Colombia, Ecuador and Mexico also produce sour crude.
Price differentials have been turned on their head. Mars traded above LLS - a rare occurrence. And Middle East benchmarks Oman and Brent (both medium-density, sour) were more expensive than ICE Brent (light sweet) futures - another unusual event.