According to sources and Refinitiv Eikon data, US Gulf Coast crude oil exports have resumed after recent hurricanes knocked down 26 million barrels of offshore production, with local prices falling as more shipments leave the region. Hurricanes Ida and Nicholas wreaked havoc on offshore platforms, pipelines, and processing hubs, halting output for weeks. On Thursday, restarts continued, with around 28% of US Gulf of Mexico petroleum output offline. Some ships remained at sea, waiting to load crude from the United States.
Mars prices have been easing in recent days as a result of this tactic. Mars for October delivery sank to a 50-cents-per-barrel discount to the US benchmark on Wednesday, the lowest in two weeks, after jumping to a $1.50 per barrel premium above WTI, the largest since January. However, because damage to a critical offshore transfer point, some analysts believe Mars will be the last grade to return to the export market.
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