Sour Crude Discounts Widen As Gas Prices, OPEC Production Grow

Higher availability of high-sulfur, or sour, crude grades globally as well as surging natural gas prices in recent months have significantly widened the discount at which sour grades trade relative to the low-sulfur crudes. As OPEC, whose members produce mostly medium-sulfur and high-sulfur grades, is easing the production cuts, more sour crude barrels come on the market. “Unlike the sour crude oil supply that has been increasing, supply from OPEC members that produce mostly sweet crude oils has been relatively flat,” the U.S. Energy…