US Differentials Widen as Ida Impacts Dissipate

摘要

The market for medium, sour crude is loosening along the US Gulf Coast as the impacts of Hurricane Ida dissipate, just as the downstream is set to exit seasonal maintenance. Data show regional medium, sour staple Mars crude is trading some $3.50 below Light Louisiana Sweet. Further west, West Texas Sour at Midland, Texas-a proxy for the Permian Basin price-posts a discount of $1.63 to light, sweet West Texas Intermediate(WTI), data show. Differentials were much tighter in September and October, in large part because of Hurricane Ida’s impacts on regional output, particularly in offshore plays. Mars itself experienced severe disruptions, helping to tighten the market for heavier grades. Many of the outages have been resolved, however, and outright downstream capacity in the Padd 3 area has also declined amid an accelerating transition to a lower-carbon energy economy.