- Platts AGS assessed at $66.89/b, stronger against forward Dated Brent
- US crude exports averaged 3.663 million b/d last week: Kpler
Platts American GulfCoast Select was assessed at $66.89/b on May 17 with the differential for the grade against the 15 to 45 day forward Dated Brent strip assessed stronger, as weekly US crude exports surged over the week ended May 14, according to a fresh report from data intelligence company Kpler.
US crude exports for the week ended May 14 averaged 3.663 million b/d, up 1.623 million b/d from Kpler’s estimate for the week ended May 7, and up 1.867 million b/d from the US Energy Information Administration’s reported level for the same period.
US export flows to Europe remained strong last week, averaging 956,000 b/d, according to Kpler, while the four-week moving average rose to 1.2 million b/d.
Supportive refining margins have kept arbitrage for WTI MEH crude into Rotterdam against local Forties crude open in May, with the Platts Crude Arbflow calculator reporting the arbitrage incentive for WTI MEH crude into the region as open at a $1.43/b average incentive in May, up from an average incentive of just 26 cents/b in April. However, ample volumes of WTI crude in Europe have placed some pressure on the market for light sweet crude in the region, sources have noted.
The arbitrage incentive in Singapore, however, has been thin in recent weeks, while into Northeast Asia, it has been closed. Through May, the arbitrage incentive for WTI MEH into Singapore against local Tapis crude has averaged just 31 cents/b, down from an average of 49 cents/b in April and 87 cents/b in May, according to Platts Arbflow.
Into Japan against local ESPO crude, however, the arbitrage incentive for WTI MEH crude has averaged minus $1/b through the start of May, slightly improved from an arbitrage incentive of minus $1.11/b in April.
Demand from Asia has taken a hit while some Indian refiners cut run rates as the country continues to battle a new wave of coronavirus infections. This lowered demand has added length to the Atlantic basin light sweet crude market as it has left more West African barrels, particularly Nigerian cargoes, in the market as India was a major purchaser of crude from the West African country.
Platts AGS, meanwhile, was assessed 19 cents/b stronger against the forward Dated Brent strip at a $2.08/b discount, while against the forward NYMEX WTI strip, the grade was assessed 3 cents/b weaker at a 68 cents/b premium.