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GlobalStock
The trading arm of the French oil and gas producer TotalEnergies (NYSE:TTE) is offering a higher price on the US physical crude oil market, Bloomberg reported on Tuesday.
WTI crude for delivery to Oklahoma’s Cushing hub rose to its highest premium since November in addition to futures prices rising above $90/bbl; foreign buyers must pay an additional $1-$2/bbl to have the crude shipped to the Gulf Coast for export.
At such high levels, U.S. crude is quickly becoming too expensive for buyers from Asia to Europe, who have relied on the U.S. to fill the global oil shortage caused by OPEC+ cuts, the report said.
While more oil could remain in the US, the price increase will ultimately feed into higher gasoline and fuel costs in the US and abroad, threatening to increase the rate of inflation everywhere.
TotalEnergies’ (TTE) willingness to pay for WTI crude reflects the fact that high refining margins are driving competition for US oil as global supply has declined significantly; US refining margins remain historically high at ~$30/barrel, even as plants undergo seasonal maintenance.
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