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AlwaysFree: Mexico, Ecuador And Venezuela Hit By Oil Slump

Author: SSESSMENTS

Following the crash in benchmark crude futures, prices of key Latin American crude grades plunged this week. 

Brent crude futures yesterday slumped 25 percent. In nearly 20 years, that level is their lowest. Due to a massive supply glut and a 30 percent collapse in demand, US West Texas Intermediate oil previously sent to minus-$40 per barrel.

With largest buyers in the US Gulf Coast, Latin America exports some 5 million bpd of mostly heavy crude. About 50 percent of its sales are through spot trades on the open market, while the other 50 percent is through long-term supply contracts. 

Mexico’s oil export basket on Monday closed at -$2.37 per barrel. After trans-shipping fees off Malaysia, spot sales of Venezuela’s flagship Merey crude are being offered at only $1 to $2.

On Tuesday, Ecuador’s Napo heavy crude was trading at $6 per barrel below WTI for June delivery. Oriente medium crude, meanwhile, was at around $4 per barrel below WTI. It indicates final spot prices of $6 to $9 per barrel. Those two grades are indexed to US WTI futures.

Tags: AlwaysFree,Crude Oil,English,Latin America

Published on April 22, 2020 11:24 AM (GMT+8)
Last Updated on April 22, 2020 11:24 AM (GMT+8)