Falling tanker rates are making it easier for the US to export crude oil, especially for lighter sweet varieties. This is leading to a rise in prices.

This week, the price differentials for WTI MEH and WTI Midland against standard US futures have strengthened due to lower shipping costs. These key oil grades are doing better than the sour crude variants. For instance, the US medium sour Mars Blend, which is similar to the high-sulfur barrels from Venezuela, is facing pressure as the US is already selling some of Venezuela’s oil supplies.

WTI MEH and WTI Midland have hit their highest levels in about two weeks.

The significant drop in freight costs is encouraging US crude to be exported, which helps support domestic oil prices and reduces worries about rising US stockpiles.

Scott Shelton, an energy expert at TP ICAP Group, noted, “The shipping markets are opening up, and rates are decreasing for shipments from the US and the UK to Asia. This is benefiting the US crude market.”

According to data from the Energy Information Administration, overall US petroleum stockpiles, excluding strategic reserves, have reached their highest levels since July 2024. This increase is mainly due to a second week of rising oil inventories across the country. Shelton mentioned that the recent rally in WTI MEH suggests that oil is being exported from the US and that the inventory increases will likely be reversed soon.