Swimming in lights,US refiners are looking for heavies.

摘要

Over the past four years(comparing US EIA data from Dec.2018 and Jan.2015),crude production in the US grew by 2.576MM b/d while exports rose by 2.016MM b/d.Around 92 of the incremental production was classified at ≥35°API(1.85MM b/d of 35.1-45.0°API and 530K b/d of ≥45°API),according to a Morningstar Commodities Research analysis of EIA data.Using 35°API as a cut-off,75 of average 2018 output was lighter while 25 was heavier.According to a Reuters report,new production from wells in the Permian Basin shale play has recendy been registering in the low 50s°API.West Texas Light-the new crude grade recently established to accommodate these higher API gravities-is being priced at a fl-2/bbl discount to WTI.(Please see related article on p.27 of die April 15 Digest)