Synthetic Crude Oil Soars Amid Global Diesel Disruptions
Synthetic crude oil from Alberta's oilsands has seen a drastic price surge in recent days due to global disruptions in diesel supplies.
According to data from Modern Commodities, synthetic crude is now commanding $19.25 more per barrel than the US benchmark West Texas Intermediate (WTI), marking an almost 200% increase since March 27.
This sudden spike is attributed to the effective closure of the Strait of Hormuz and retaliatory attacks on Persian Gulf energy infrastructure, disrupting global energy flows and crippling diesel output in the Middle East and Asia.
Oil refiners in these regions are struggling to secure traditional crude supplies due to shipping disruptions, leading to a significant increase in demand for synthetic crude, which has a chemical makeup that allows for higher diesel and jet fuel extraction rates compared to other grades of oil.