4.5 C
New York
Saturday, December 3, 2022

U.S. crude oil exports to Asia poised to hit record high

2/2
U.S. crude oil exports to Asia poised to hit record high
© Reuters. FILE PHOTO: An oil tanker waits in line in the ocean outside the Port of Long Beach-Port of Los Angeles complex, amid the coronavirus disease (COVID-19) pandemic, in Los Angeles, California, U.S., April 7, 2021. REUTERS/Lucy Nicholson

2/2

 

LCO
+0.48%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

CL
+0.16%

Add to/Remove from Watchlist

Add to Watchlist

Add Position

Position added successfully to:

Please name your holdings portfolio

Type:

BUY
SELL

Date:

 

Amount:

Price

Point Value:

Leverage:

1:1
1:10
1:25
1:50
1:100
1:200
1:400
1:500
1:1000

Commission:

 

Create New Watchlist
Create

Create a new holdings portfolio
Add
Create

+ Add another position
Close

By Arathy Somasekhar and Muyu Xu

HOUSTON/SINGAPORE (Reuters) – Deliveries of U.S. crude oil to Asia are set to touch a record 1.8 million barrels per day this month, Kpler shipping data showed, as demand climbed on a widening discount to global oil.

Refiners in China, India and South Korea are returning as big U.S. crude oil buyers after several months of scooping up cheap Russian barrels. Asia’s renewed buying reflects soaring demand for crude to produce diesel fuel and comes as Europe continued to stock up in the aftermath of Western sanctions on Russian purchases.

Overall, U.S. crude exports last week touched a weekly record of 5.1 million barrels per day (bpd), boosted by higher shale production. The U.S. benchmark West Texas Intermediate (WTI) traded at a nearly $9 a barrel discount to global Brent, compared to a $6 discount at the start of September. A wider discount makes U.S. oil more affordable to foreign buyers.

South Korea is set to import a record 619,000 barrels per day (bpd) of U.S. crude oil, according to Refinitiv, becoming the month’s top Asian importer of U.S. crude.

China will draw at least 450,000 bpd, its highest since December 2020 while India’s demand is forecast to be the highest since March, Refinitiv data showed. Both are rising in the face of higher tanker rates up about 40% on some segments in October.

China’s refineries are stepping up production with the end of maintenance overhauls and receipt of higher fuel export quotas to lift sagging merchandise exports.

Graphic: U.S. crude deliveries to Asia set to touch a record in November – https://graphics.reuters.com/USA-OIL/EXPORTS-ASIA/jnvwygzxevw/chart.png

There is also strong global demand for diesel that is encouraging refiners across the region to add production runs, said Matt Smith, analyst at data firm Kpler.

“With Asian refiners set to ramp up refinery runs, with China’s sizeable product export quota, and with OPEC’s core producers dialing back on output, demand for U.S. crude is strong,” he said.The Organization of Petroleum Exporting Countries (OPEC) and its allies this month began cutting output by 2 million bpd on fears of lower demand amid slowing economies.

U.S. oil production was 11.98 million bpd in August, the latest month of official figures, as producers raise activity after pandemic cutbacks.

“Despite rising freight costs, U.S. crude is still economical for Asian buyers, and the buying interest would remain as long as the arbitrage window is still open,” a trader said.

Source: Investing.com

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

11,282FansLike
12,893FollowersFollow
744FollowersFollow
- Advertisement -

Latest Articles

Popular Articles