Hunt for supplies sends WT Sour into triple digits

May 14-With a multitude of ships stranded in the Strait of Hormuz, the search is on to source any type of energy possible.

That has led to a surge in the price of West Texas Sour, which now exceeds West Texas Intermediate by about $6 a barrel.

Analysts at Plains All American said that with Middle Eastern sour barrels disrupted, domestic sour grades like WTS can be bid up by refiners configured to run that type of crude.

"It's all about getting production to other countries, whether it's raw crude or refined products," said Tom Seng, professor at the Texas Christian University Ralph Lowe Energy Institute.

Speaking with the Reporter-Telegram by phone, Seng predicted there will be a tug-of-war among countries seeking supplies.

The United States is in a very fortunate position in terms of supply.

"No one's talking about rationing, no one's talking about shortages," he said.

That's in light of International Energy Agency estimates that there has been a 250-million-barrel drawdown in global oil stores and an estimated 10 million to 14 million barrels a day off the market since the Iran war began.

"Each day that's not resolved is another 10 million to 14 million barrels that I can tap into," Seng said. "No one's saying 'I have 10 to 14 million barrels that I can tap into.'"

Even if the conflict is resolved and ships begin sailing through the strait in the next 30 days, Seng said it will take time for consumers to see lower energy prices.

"That's also the time to make up that drawdown. We will have an invisible market where countries are refilling their reserves," he said.

What baffles him is the lack of information about what's happening in the Middle East, he said.

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This story was originally published May 14, 2026 at 9:51 PM.