U.S. Oil Exports Surge as WTI-Brent Discount Hits 11-Year Wide

HOUSTON/New York, March 18 - U.S. West Texas Intermediate crude traded at a $12.05-per-barrel discount to Brent on Wednesday-the widest gap in 11 years.

Middle East infrastructure attacks, including strikes on Iran’s South Pars gas field, sent Brent surging 3.8% while WTI rose just 0.1%. The resulting arbitrage has triggered a wave of U.S. Gulf Coast crude loadings for Europe.

Freight costs for Aframax tankers jumped to $6 million-but remain economically viable given the spread. Analysts expect more ballast vessels to head to the U.S. Gulf in coming days.

Meanwhile, U.S. crude inventories at Cushing, Oklahoma, hit 27.52 million barrels-the highest since August 2024-and the U.S. is releasing 172 million barrels from the Strategic Petroleum Reserve, further pressuring WTI.

Export momentum may slow if freight costs rise further, narrowing the arbitrage window.