The largest oil market in the USA responds to sanctions threats.

The situation in the oil market along the Gulf Coast in the USA is undergoing changes that are impacting the usual price patterns. Currently, prices for low-grade heavy oil, which has typically been cheaper than light crude oil, are rising due to concerns about potential oil sanctions against Russia and Iran.

According to Bloomberg, the price difference between high-quality oil from the Permian Basin and heavy sour Canadian oil from Cold Lake has narrowed following the tightening of sanctions against Russia and control over supplies from Iran. Previously, this difference was $4.25.

Fuel producers along the Gulf Coast are forced to change their oil procurement strategies due to the sharp decline in prices.