Commodities
Sanctions Risks Upend Oil Prices in US Gulf Coast Market
- Light-heavy oil differential is narrowest since March 2022
- China and India tap heavy oils from Canada on sanctions scare
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Concerns that oil sanctions will curtail supplies from Russia and Iran are upending the oil market’s usual price patterns in the US Gulf Coast market, home to the country’s largest oil refining hub.
The price of low-quality heavy oil, which usually trades at a discount to lighter Permian crude, is strengthening on fears of new sanctions.