Dude, Where’s my Sour?Tags: Asia oil demand, CPC Blend crude exports, Indian oil imports, Iran oil exports, Urals
Scary times lay ahead, as Halloween looms and Iranian sanctions beckon. Despite a lesser drop-off in Iranian exports than expected, they still appear set for a roller coaster ride lower as we hurtle through November. With this white-knuckle ride in mind, shifts in crude flows have been underway as end-users make arrangements so they aren’t left wondering: Dude, where’s my sour?*
Last month, India imported Canadian crude for the first time since October 2017, with 1 million barrels of heavy sour Kearl discharging at Indian Oil’s Mundra terminal. Ecuadorian heavy sour Napo is also a less typical grade to India, but two cargoes have been discharged in the last two months, both at Reliance’s Jamnagar refinery.
We are also seeing higher volumes of Kazakh light sour CPC blend and medium sour Russian Urals delivered to India in recent months, as shifting price spreads amid higher demand have pulled barrels away from Europe and toward Asia.
About The Author
Matt is a Director of Commodity Research at ClipperData. Matt specializes in extracting key themes from technical and fundamental analysis of the global energy market, and communicating these through daily and weekly deliverables. He also provides oil and natural gas analysis and commentary to national and international media outlets that include CNBC, Fox Business, Russia 24, the Wall Street Journal, MarketWatch, AFP, Bloomberg, Reuters, and the Oil Daily. Prior to joining ClipperData, he worked for eight years at Schneider Electric / Summit Energy as a Global Commodity Analyst, where he also founded and authored the blog, Energy Burrito. He started his career at the Royal Bank of Canada in the UK, spending eight years with the bank. During that time, he managed $55 million in assets as a portfolio manager and financial analyst.