Low-sulfur crudes are attracting significant premiums. Image Credit: File Image / Pixabay
Increased demand for low-sulfur oil to meet the new demand for 0.50% sulfur bunkers has led to one crude blend trading near $100/bl in price, according to news agency Bloomberg.
"Australia’s Santos Ltd. this week sold a cargo of March-loading Pyrenees, a dense and low-sulfur oil, at a premium of about $31 a barrel over Dated Brent, according to traders who took part in the tender," the agency reported Friday.
"That’s the equivalent to just under $100 a barrel given that the global benchmark is trading at about $65."
Heavy sweet crudes like Pyrenees give a high yield of low-sulfur middle distillates when refined, making them ideal for a refining industry seeking to maximise distillate output as marine demand shifts towards cleaner fuels.