Tag: Exports

US Crude Export Destinations Jan16

European refiners play larger role in US crude & condensate exports —  With Canadian imports remaining stable, Europe becomes the primary destination for incremental US crude and condensate exports.  Although North Sea production should decline by 300 kbpd during 2015-20, European refiners have limited ability to take larger volumes of 45° API crude and 55+° API condensate, when we examine each country’s crude slate.  US producers will need to find additional outlets in Latin America, as well as higher Asian exports, as the rising light-ends imbalance pressures prices and opens arbs.

Rising Crude Runs in Producing Countries & Crude Exports Oct15

Where exports come from…  Severe drop in refinery utilisations among eight key oil producers and exporters provided an additional 500-700 kbpd of crude exports during 1h16.  These eight producers account for more than half of global crude exports.  Recovery in utilisations should remove this extra crude from the market in 2016, and the Latin American impact alone could approach 200 billion tonne-miles, or 2% of tanker demand.  Refinery utilisations do not recover fully, however, due to the destruction of the Baiji refinery in Iraq, as ISIS forces retreated, and from continued operating upsets in Venezuela.