OPEC cut accentuates feedstock flexibility

摘要

Global refiners can't underestimate the importance and benefits of the ability of processing a variety of crudes in a volatile market. Current Saudi Arabia-led production reduction has distorted the traditional price differential between light sweet and medium/heavy sour grades. Since Saudi and most of OPEC's key producers largely pump out sourer and heavier oil, the reduction quotas have decreased their outputs and exports to the world. Meanwhile, yield surge in the US light tight oil and export rise of light sweet oil from Libya, Nigeria, and even Kazakhstan have recendy narrowed heavy oil discount. This skewed price scenario is benefitting refiners who are equipped to handle crudes of different API's and sulfur contents around the world.