A general view of a crude oil importing port in Qingdao, Shandong province, China, Nov. 9, 2008. China is a major importer of Iranian oil.
Houston Chronicle/Bloomberg: U.S. oil challenges Mideast sellers with Asian trading debut
The rivalry between U.S. and Middle Eastern oil producers has jumped a notch as American crude makes its way right to the heart of Asia, the world’s most-prized energy market.
Royal Dutch Shell Plc has offered a cargo of U.S. West Texas Intermediate Midland crude that’s priced off the Dubai benchmark in its debut during Asian hours on S&P Global Platts’ widely-referenced trading platform, according to two traders and data compiled by Bloomberg.
Offering the shipment -- scheduled to be delivered to Singapore, or Linggi or Nipah in Malaysia -- against the Middle East’s oil benchmark brings it into direct competition with Gulf grades produced in Saudi Arabia, Abu Dhabi and Qatar. Once considered a one-off arbitrage, the flow of American oil to Asia has increased in recent years.
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WNU Editor: Oil tankers being targeted by Iran in the Persian Gulf is making it easier for U.S. producers to enter the Asian market. Attempts by OPEC countries to limit production to maintain a higher price is also backfiring as US producers make up the shortfall.
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