The contamination with organic chlorides, which is very unusual, comes at a time when the global oil market is already short of supply of crude of similar quality to Urals. The combined impact of U.S. sanctions on Iran and Venezuela, OPEC+ production cuts, and lower-than-expected output in Mexico has reduced worldwide shipments of denser crude with high sulfur content. Premiums in the physical market for medium-heavy crude have surged to multi-year highs as a result.
“This is a significant unplanned outage that is having spill-over effects,” said Harry Tchilinguirian, head commodity strategist at BNP Paribas SA. “What you end up with is a further reduction in the availability of medium quality crude oil.”
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