High-sulfur oil prices have risen globally this month after Saudi Arabia, the largest oil exporter, supported prices and expanded its production cuts for high-sulfur oil, marking the first sign of the kingdom's efforts to bolster global prices. Mark Rossano, a partner at Prime Vision Network, stated, "The kingdom's constraints have had a significant impact on medium and high-sulfur oil supplies." Traders and brokers believe that "the price increases seen in high-sulfur crude grades from the North Sea, the U.S., and Canada surged as refineries in China, Europe, and the United States rushed to secure the dwindling supply, due to sanctions on Russia and Saudi cuts."
Other factors contributing to the rise in high-sulfur crude prices include U.S. government purchases to replenish emergency stocks, production halts due to Canadian wildfires, and concerns about potential declines in U.S. high-sulfur crude production during the Atlantic hurricane season. Rohit Rathod, an analyst at Fortexa for oil data, indicated that Gulf Coast U.S. refineries, which are primarily equipped to process high-sulfur oil, are likely to purchase more barrels from Latin America. He added, "OPEC+ players are pulling supplies, and we are already in a tight market for high-sulfur oil at the very least."
