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World’s Dirtiest Crudes Get Boost From Historic Oil Output Cuts

  • Cost of denser, high-sulfur Upper Zakum rises against Murban
  • Heavier crudes mainly produced in Middle East, Latin America
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Heavier and more sulfurous oil is getting a price boost as production curbs by the OPEC+ alliance tighten the supply of what’s generally regarded as lower-quality crude.

Abu Dhabi’s Upper Zakum, a grade with high sulfur content, is at the narrowest discount against lighter Murban since 2001, according to official prices set by the emirate’s national oil company. Iraq’s Basrah grades are also trading at high differentials in the spot market, signaling buyers’ willingness to pay a hefty premium above official selling prices set by state-owned marketer SOMO.