Heavy sour is tightening. WCS traded at a $US 2.30 discount in the US Gulf as Saudi Arabia cuts are mostly in high sulfer sour plus the SPR is looking for heavy sour to refill.
But sour prices are no longer cheap. Norway’s medium sour Johan Sverdrup crude climbed on Friday to a record $3.50 per barrel premium to dated Brent, according to traders, compared with a more than $6 discount in December. BOE Report
U.S. Mars sour crude prices on Thursday of last week also traded at a $2 per barrel premium to U.S. crude futures at Cushing hub, its highest in three years. It traded at a premium to light, sweet WTI Midland at East Houston terminal, something rarely seen before.