ANALYSIS: Global crude supplies set for quality shift as OPEC+ unwinds pandemic cuts

Hellenic Shipping News | Feb 22, 2021 at 1:00 AM
  • Oil supplies from OPEC and its key producer allies are set to begin flooding back to the market this year, triggering a shift in global crude quality which could bring welcome relief to swathes of embattled refiners struggling to turn a profit in the wake of the pandemic-trigged demand collapse.
  • A wide EFS makes crude priced against Dubai more economically attractive for Asian refiners, which are configured to process heavy, sour crude from the Middle East, compared with Brent-linked ones from the Atlantic basin.
  • At the other end of the crude quality spectrum, supplies of light, sweet grades typically produced in the North Sea, Nigeria, Libya, and the US will struggle to make such an impact.