With ever-increasing volumes of Permian crude oil being exported and the recent inclusion of WTI Midland in the assessment of Dated Brent prices, the issue of iron content — especially in some Permian-sourced crude — is coming to the fore. This has become such a point of emphasis for exported light sweet crude because many less complex foreign refineries do not have the ability to manage high iron content adequately. Iron content that exceeds desirable levels could have far-reaching repercussions, from sellers facing financial penalties for not meeting the quality specifications to marine terminals being excluded from the Brent assessment if they miss the mark. It’s a complicated issue, with split views on what causes the iron content in a relatively small subset of Permian oil to be concerningly high — and how best to address the matter. In today’s RBN blog, we look at iron content in crude oil, why it matters to refiners, how it affects prices, and what steps the industry is taking to deal with it.
Iron Man – Iron Content In Some Permian Crude Oil Affects Entire Value Chain
