Heavy oil surplus affects markets
The surplus of heavy oil in the Americas is causing disruptions in the global oil market, as large quantities of heavy oil accumulate due to soaring shipping costs that have reached record levels. This limits exports to Asia and Europe, despite oil prices remaining above $100 per barrel. North and South America produce more oil than they consume and rely on exporting heavy oil to maintain balance. However, the rising transportation costs, especially the chartering of ultra-large oil tankers, are putting pressure on prices and leading to a significant decline in heavy oil prices. Meanwhile, American refineries are operating at maximum capacity to meet the demand for diesel, despite the challenges posed by high distribution and transportation costs.
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