Guyanese crudes drop to lowest on record as freight costs hammer FOB values

Platts assessed Guyanese crudes at their weakest level to Dated Brent since assessments began in 2023 as shipping costs continue to rise.

"Crazy market," said one trader active in the Americas crude markets. A separate trader said, "I wish I had a VLCC."

Platts assessed Payara Gold at a discount of $16.05/barrel to Dated Brent, down $6.55/b on the day, and the weakest since that assessment began on Dec. 1, 2023. The day's move was based on activity in the Platts Market on Close assessment process, which saw ExxonMobil offer a cargo for 1 million barrels loading Nov. 11-12. Exxon entered the MOC with its offer at a discount of $10.15/b to the Latin American Dated Brent strip, lowering gradually until it reached a discount of $15.95/b. The offer remained standing at that level at the close.

Platts also assessed the other Guyanese crudes, Liza, United Gold and Golden Arrowhead lower by the same amount, as their spreads to Payara Gold remained unchanged.

The rapid decline in Guyanese FOB values mirrors the declines in other regions, with WAF values also declining sharply since the end of September. Djeno crude fell $1/b to a discount of $26.10/b versus the Dated Brent strip, and down $21/b since Sept. 24, when it was assessed at a $5.10/b discount to the strip.

Platts assessed Suezmax freight from Guyana to UKC at w855 Oct. 9, the strongest on record, and up 680 since freight rates began to steadily rise on Sept. 1.