• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 18 mins The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 2 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 49 mins Democrats and Gun Views
  • 3 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 2 hours Cost of oil
  • 9 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 10 hours Trump Orders Biofuel Boost
  • 14 hours Buy Oil Monday?
  • 5 hours Iran says tanker oil sold at sea, buyer sets destination
  • 16 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 10 hours “Who’s going to bail out the Central Banks?”
  • 13 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 13 hours Green New Deal Preview in Texas Town
Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

Is Oil in These Out-of-The-Way Places The Next Big Play?

Very odd news in the international crude markets this week.

Reports confirm a first-of-a-kind event in this space. Oil consumers in India buying crude from a far-away place: Eastern Canada.

Indian Oil Corp. reportedly purchased a cargo of White Rose crude. Coming all the way from offshore Newfoundland.

The buy seems to suggest structural changes afoot in the global oil markets. Never before have Indian users gone so far afield to secure supply.

The question is: why?

The reason has something to do with the type of crude. White Rose is a light, sweet crude blend. Very similar in quality to the world's most well-known sweet crude, Brent.

For refiners configured to use sweet crudes like Brent, White Rose is thus an option.

But it’s not a cheap option. White Rose has recently been selling at a premium to dated Brent. Currently going for over $109 per barrel.

The fact that Indian buyers are paying a premium to Brent in order to secure Canadian oil suggests they are growing somewhat desperate. Meaning that Brent and other sweet blends must be in shorter supply than usual.

This "search for sweet" may explain why Brent prices have been so strong against U.S. blends like WTI lately. With the spread between these crudes currently sitting north of $10 per barrel.

The buying pressure on Brent-type blends should keep prices strong. Meaning that explorers developing such fields could see higher profits than their North American counterparts.

Which could in turn create a rush for international oil firms. A sector that's of late been somewhat neglected in the markets.

Think North Sea, West Africa, Southeast Asia, and even spots like Colombia (which this month sold its first-ever crude shipment to Italy). These could well be the next hotspots for oil investors.

Here's to the sweeter things,

By. Dave Forest




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play