U.S. Crude Prices Surge as Buyers Hunt for Russian Replacement
- WTI at Midland, Houston trade at highest since May 2020
- Refiners seeking Russian crude replacements amid sanction fear
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Prices for physical barrels of oil in some of the biggest trading hubs in the U.S. jumped to the highest levels against crude futures in nearly two years as buyers hunt for replacement barrels if Russian supplies are disrupted due to sanctions.
Prices for U.S. crude grades in West Texas, Houston and offshore Gulf of Mexico surged to the strongest levels since 2020 just as Russian crude traded at a record discount amid concern about the risk of sanctions following the nation’s invasion of Ukraine. Traders said that some of the U.S. grades may not be exact replacements for Russian crudes but the demand for oil available immediately is so great that it is pushing prices higher across the board.