Upside down: New price relationships in the US Gulf coast crude markets

03/22/20 • 8 min

Long-stable crude oil price relationships at the US Gulf coast have been upended by the global crude supply/demand imbalance. What is likely to happen next? How much crude can Cushing store? And what does this mean for US exports? Argus VPs for Crude Business Development, Jeff Kralowetz and Bruce Fulin, and Argus Americas Crude Editor Gus Vasquez discuss this and more.

Previous Episode

Asian refiners react to pandemic as crude glut soars | Episode 4

Asia-Pacific refiners are preparing to scale down operations to confront a collapse in global fuel demand. As storage fills up, they will have to reduce the amount of crude they process, but not at the expense of competitive feedstocks from the Middle East. Soaring freight rates are rendering long-haul crude shipments from the Atlantic basin too expensive to Asia-Pacific, so it is North Sea, US and Latin American grades that face the biggest challenge, while west African cargoes and short-haul Russian supplies may remain competitive.

Host: Alejandro Barbajosa, Argus VP, crude & LPG - Middle East & Asia-Pacific.

Next Episode

From the Economist’s Chair: How might coronavirus alter markets?

It’s all too easy to be overwhelmed by the current global crisis, and this episode of “From the Economist’s Chair” takes a step back from the day-to-day maelstrom of likely crude oil price floors, inventory capacity, ultimate demand loss and upstream budget cuts. What shifts may be ahead in the global economic and financial system as a result of this pandemic?

Argus Chief Economist David Fyfe considers more broadly the changes this cruel coronavirus episode might force upon international commerce, global relations and the commodity markets.