US Gulf Coast Crude Oil Exports to Hit Record High This Quarter
(Reuters) — Exports of crude oil from the U.S. Gulf Coast could hit a record 3.3 million barrels per day (MMbbl/d) this quarter, analysts said on Monday, as Europe chases U.S. crude to offset sanctioned Russian oil.
U.S. exports have risen in the last three months, helped by Washington's decision to release 180 million barrels of oil from the nation's Strategic Petroleum Reserve, which have flooded the domestic market.
Exports to Europe are expected to average about 1.4 MMbbl/d this quarter, about 30% higher than the year-ago quarter, while export to Asia is set to drop to under 1 MMbbl/d, according to energy data firm Kpler.
The higher purchases by European buyers have more than offset the decline in flows to Asian countries, which have been buying heavily discounted Russian crude.
"The 1.53 million bbl/d of U.S. crude exports to Europe recorded in April is the second-highest reading on record," said Viktor Katona, co-head of crude analysis at Kpler. He said the figure illustrates "a very strong pull in the immediate aftermath of Russia's invasion of Ukraine."
Tight U.S. refining capacity also boosted exports, Rystad Energy analysts noted. The United States has lost nearly 1 MMbbl/d of refining capacity since 2020.
"It's no surprise that government intervention to support crude supplies has resulted in an increase in exports," said Artem Abramov, head of shale research at Rystad Energy.
Throughput via the Port of Corpus Christi has increased by more than 150,000 bbl/d to reach 1.86 MMbbl/d. Port of Houston exports also have been rising since the third quarter of last year, but remain below pre-pandemic levels, Rystad added.
"The call on U.S. crude could go even higher, if additional restrictions like secondary sanctions are implemented" against Russia, said energy strategist Clay Seigle, citing Vortexa data.
Crude exports will continue to grow and approach 4 MMbbl/d in the first three months of 2023, Rystad estimates.
Related News
Related News
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Energy Transfer to Build $5.3 Billion Permian Gas Pipeline to Supply Southwest
- Enbridge Sees High Demand to Expand 593-Mile Canada-to-U.S. Gulf Oil Pipeline
- Strike Pioneers First-of-Its-Kind Pipe-in-Pipe Installation on Gulf Coast with Enbridge
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- LNG Canada Start-Up Fails to Lift Gas Prices Amid Supply Glut
- Strike Pioneers First-of-Its-Kind Pipe-in-Pipe Installation on Gulf Coast with Enbridge
- Enbridge Sees High Demand to Expand 593-Mile Canada-to-U.S. Gulf Oil Pipeline
Comments