Pages

Monday, December 28, 2015

Harold Hamm On Superior US Crude Oil, Exports, And Prices -- December 28, 2015

On December 22, 2015, it was noted that WTI reached parity with Brent oil. A few days later, FuelFix had this to say:
A prominent Oklahoma oilman says the high quality of U.S.-produced oil is reflected in its rising price on international markets.

U.S. oil is trading higher than the international standard for the first time since 2010 after President Barack Obama signed a measure last week lifting the nation’s four-decade ban on oil exports, the Oklahoman reported Friday.

Domestic oil gained 60 cents to $38.10 a barrel on Thursday while oil produced elsewhere added 53 cents to close at $37.89.

Harold Hamm, CEO of Continental Resources, says it’s a sign that the world sees domestic light, low-sulfur oil as superior to international oil, much of which is denser and higher in sulfur.

“Now the premium quality of U.S. light sweet crude is being recognized globally and rewarded by the market,” said Hamm, chairman of the Domestic Energy Producers Alliance.

Most refineries in Europe and Asia are designed to handle primarily light sweet crude like that produced in the United States. Light sweet historically has traded at a premium to heavy sour blends.

But a rapid increase in domestic production over the past decade helped flip the prices, setting domestic prices below the international rate.
Perhaps Vitol knows something US analysts don't know, and perhaps a $4-WTI-premium is not required to increase US crude oil exports.

*******************************
Filloon On Bakken Opportunties

At SeekingAlpha.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.