Oil Markets Guyana shakes up oil markets as Yellowtail emerges
May 8, 2025
In this discussion, Felipe Perez, the Head of Latin America Fuels & Refining Research at S&P Global Commodity Insights, sheds light on Guyana's burgeoning oil industry. He explains how the new Yellowtail development will introduce 250,000 b/d of light sweet crude, positioning it as a competitor to US and Argentine exports. The conversation dives into the implications of current oil prices on Guyana's market entry and examines potential buyers for this emerging crude, along with the broader impacts on global refinery operations and US production trends.
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Yellowtail: Guyana's Light Sweet Entry
- Guyana's Yellowtail crude will add 250,000 b/d of light sweet crude with high quality sulfur content.
- It will compete with US, Argentine, and West African exports, especially in Europe and US West Coast.
Dangote refinery impacts light crude market
- Nigeria's Dangote refinery is ramping up, consuming light crude similar to Yellowtail.
- This reduces global light crude availability, potentially benefiting Guyana's exports timing.
Guyana's Cost Edge Over US Shale
- US shale producers face low price challenges, limiting production growth below current WTI prices.
- Guyana benefits from lower breakeven costs, giving it more resilience in a low price environment.