U.S. Oil Imports May Fall as Gulf Prices Drop Below Brent
U.S. crude imports may drop from last week’s two-month high as prices on the Gulf Coast, home to 51 percent of refining capacity, slipped below Brent.
Imports climbed 337,000 barrels a day in the week ended July 25, the EIA reported today. Light Louisiana Sweet crude on the Gulf traded below Brent, benchmark for half of global oil trade, for a fourth day, according to data compiled by Bloomberg.
LLS surged $4.52 a barrel above Brent on July 23, the biggest premium in one year, as strong refinery demand depleted crude inventories in the Gulf region. For the past year, the grade averaged $4.26 cheaper than Brent. Refineries slowed their operation last week amid rising fuel inventories.
“This is a short-term reaction,” said James Williams, an economist at WTRG Economics,“But it’s not going
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