• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 3 hours Would bashing China solve all the problems of the United States
  • 8 hours Yale University Epidemiologist Publishes Paper on Major Benefits of Hydroxchloroquine for High-risk Outpatients. Quacksalvers like Fauci should put lives ahead of Politics
  • 13 hours Model 3 cheaper to buy than BMW 3 series.
  • 8 hours COVID 19 May Be Less Deadly Than Flu Study Finds
  • 21 hours China to Impose Dictatorship on Hong Kong
  • 4 hours Pompeo's Hong Kong
  • 11 hours Thugs in Trumpistan
  • 2 hours China’s Oil Thirst Draws an Armada of Tankers
  • 3 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 1 day Iran's first oil tanker has arrived near Venezuela
  • 2 days Let’s Try This....
  • 2 days Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 1 day 60 mph electric mopeds
  • 2 days HVDC Cheaper Than Low-carbon Natural Gas

A Bad Time to Lose Iran

Or least Iranian oil.

Reports surfaced this week that sanctions are decimating Iranian crude exports. India's imports from the pariah nation appear to have fallen 60% in June, year-on-year. Iran's top four customers--China, Japan, India and South Korea--probably dropped their imports by a third.

The loss of this supply is going to make things interesting for global oil trade.

That's because the disruption comes just as the differential between European Brent crude and American West Texas Intermediate has collapsed. Brent had been trading at premiums of up to $23 above WTI, as recently as February. But this week the two crudes hit parity for the first time in three years.

The result is Brent is suddenly a lot more attractive for refiners in the U.S. Gulf Coast. Those users will undoubtedly be eying increased imports of oil over domestic supply.

But they'll be competing with the rest of the world--and especially Asia--as it scrambles to find supply outside Iran.

A good time to look at plays linked to non-WTI oil prices.

Here's to the world of oil,

Dave Forest



Join the discussion | Back to homepage



Leave a comment
  • Iran Top News on August 23 2013 said:
    Why do I get the impression from these opening words in The Guardian article that it's Iran that began threatening the west.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News