Brent Premiums Reflect Shifting US Crude Import Patterns

Brent crude’s premium over both Dubai crude and Louisiana Light Sweet (LLS) crude has risen by more than six dollars per barrel in the last six weeks. At the same time low production and upcoming field maintenance push Brent prices higher, high US crude production and storage levels are tempering LLS prices and changing US crude import patterns towards increased Arabian Gulf and Caribbean imports, and lower West African imports. The same developments that push Brent up relative to LLS are therefore increasing VLCC and Aframax demand, while lowering Suezmax demand. Download here