Crude Slate Continues Push towards Light Sweet in 2019 (see Global Refinery Margins – Issue 38).

  • Given the strong US shale oil additions, it comes as no great surprise that the global crude slate is set to yet again become about 1 pp sweeter y-o-y, and slightly less heavy in 2019.
  • Medium sour barrels are set to be restricted due to Iran sanctions going forward, but other core OPEC players are expected to compensate to a certain extent.
  • The global trend towards a lighter crude slate is slowing down a bit, however, which should to some extent limit the trend of lower- available marginal residue for conversion operations.