US Crude Exports Set to Surge as WTI Discount Hits 11-Year High

The price difference between US crude oil and Brent has reached its widest point in 11 years, driven by Middle Eastern attacks on oil infrastructure. The WTI/Brent spread hit $12.05 a barrel, with Brent surging 3.8% while WTI rose just 0.1%. This disparity creates an arbitrage opportunity for traders to profit from moving oil to higher-priced markets.

Despite rising freight prices, which have jumped to around $6 million per Aframax carrying up to 700,000 barrels of crude from the US Gulf Coast to Europe, the arbitrage remains open. Chartering analyst Georgios Sakellariou at Signal Maritime said that more crude cargoes are being picked up from the US Gulf Coast for loading in March to April due to the widening WTI/Brent spread.

The US-Israeli war on Iran and Tehran's attacks on Gulf neighbors have disrupted oil and natural gas exports from the Middle East, forcing production stoppages. Analyst Neil Crosby at Sparta Commodities said that Brent is 'ripping' due to infrastructure attacks, which will drive more rallies in Brent rather than WTI.