US crude exports return to over 20mn bl in August

OREANDA-NEWS. October 07, 2016. US crude exports rose by about 40pc in August from the prior month, boosting shipments to the Netherlands, Italy and Colombia.

The US exported 20.37mn bl, or about 657,000 b/d, in the first monthly increase since exports peake din May at 20.51mn bl, according to data from by the Bureau of Census in the Department of Commerce.

About 3.12mn bl of US crude was shipped to the Netherlands in August, making it the top receiver of US crude exports behind Canada. Italy followed, receiving just more than 1mn bl after no US crude exports to this region in the previous two months.

Overall Europe and the United Kingdom combined imported 6.11mn bl of US crude in August, up from only about 634,000 bl to France in July.

Colombia received 1mn bl of US offshore light sour Thunder Horse in August. This marked the resumption of Colombian receipts of US oil since state-controlled Ecopetrol imported a 500,000 bl cargo of Bonito Sour in May in the country's first and only US import before August.

Ecopetrol signed a one-year commercial agreement with BP, who supplied them with the Thunder Horse earlier this year to identify the optimum domestic and foreign crude mix to process at Reficar, which was brought to full processing capacity in July.

Another 500,000 bl of Thunder Horse was expected to arrive in Colombia by the end of September.

Meanwhile, exports to Canada, the largest importer of US crudes, fell by 2.65mn bl to 10.21mn bl in August, putting its share of the total export volume at 50pc from about 88pc the prior month, when the US had fulfilled spare Canadian demand amid production shut-ins caused by wildfires in western Alberta.

Venezuela returned to list of countries importing US crude in August, taking about 525,000 bl of US domestic sweet (DSW) blend from supplier BP. The Latin American country had been the second-highest importer of US crude behind Canada since the December lifting to decades-old US export restrictions from March through May, bringing in over 2mn bl each month.

Venezuela imports light crude to blend with its extra-heavy production to create its 16°API Merey grade. But state-owned PdV has acknowledged that it is struggling to pay for light crude imports and heavy crude production is falling as well.

A recent BP cargo sat for 100 days awaiting payment offshore Curacao, where PdV operates the 325,000 b/d Isla refinery. Three additional BP tankers carrying light sweet oil have moored offshore since August, awaiting payment, the ministry says.

Three countries imported US crude for the first time in August. Singapore imported about 650,000 bl, Liberia about 450,000 bl and South Africa about 410,000 bl. August is the first month that any African nation has imported US crude.