Energy News Beat
The world’s biggest crude oil exporter, Saudi Aramco, bought this week its first cargo of U.S. WTI Midland, the crude grade which is now part of the dated Brent benchmark, S&P Global Commodity Insights told Reuters.
The Saudi oil giant, which is also the world’s biggest oil company, bought the cargo in the Platts window from commodity trader Gunvor. This was Saudi Aramco’s first purchase of WTI crude in the window, Joel Hanley, global director of crude and fuel oil markets at S&P Global Commodity Insights, told Reuters.
Aramco, which looks to expand its crude trading business, has already sold WTI. This occurred in February last year.
“Aramco has clearly made a decision to get more involved in trading – we will see more and more of this,” Adi Imsirovic, director at consultant Surrey Clean Energy, told Reuters.
WTI Midland has gained popularity among crude oil traders since it was included in the dated Brent benchmark a year and a half ago.
WTI Midland, produced in Texas, was included in June 2023 in the Dated Brent part of the Brent benchmark as one of several grades underpinning the contract. Dated Brent, the world’s leading benchmark price assessment is being assessed by Platts. Apart from WTI Midland, Dated Brent includes Brent, Forties, Oseberg, Ekofisk, and Troll—all of these are crude grades produced in the North Sea.
According to the Intercontinental Exchange, Brent is the price barometer for about 80% of global crude.
Going forward, Saudi Aramco expects global oil demand to grow by a steady 1.3 million barrels per day (bpd) this year compared to 2024, the oil giant’s chief executive Amin Nasser told Reuters earlier this week.
“We still think the market is healthy … last year we averaged around 104.6 million barrels (per day), this year, we’re expecting an additional demand of about 1.3 million barrels … so there is growth in the market,” Nasser told Reuters.
By Charles Kennedy for Oilprice.com
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The post Saudi Oil Giant Aramco Buys Its First U.S. WTI Midland Crude Cargo appeared first on Energy News Beat.
