While most of the world’s oil is still selling in the $29 range, there are some markets where 12-year lows have sent the cost of barrel below $20-a-barrel.
It should be noted that the regions listed below sell “sour” grades of oil, which is less favored because of higher-quality “light” oils found in other regions.
Here are the sub-$20 oil sellers according to Reuters:
The big losers in the current market are sellers in Mexico, Venezuela, Canada, and Iraq.
Some cargoes of heavy Mexican crude are now available for less than $13 a barrel. Those oils sell for less money because they are more difficult to refine.
Oil prices have slumped by more than 20% since the start of the year, which has placed more pressure on already cheap oil options.
Western Canadian Select — one of North America’s largest heavy crude oil streams — can now be purchased for less than $15. However, producers need a price above $43 to make money from the product.
The low price of Mexican crude has led to a record volume purchase of the product from Asian oil importers who are willing to spend the extra money to refine the product when it can be purchased as record lows.