US crude exports rise to 662,000 b/d, diversify: EIA

OREANDA-NEWS. August 02, 2016. US crude exports increased in May, with destinations including Latin America, Europe and Asia, according to new data from the US Energy Information Administration (EIA).

Crude exports totaled about 20.5mn bl in May, or 662,000 b/d, up by about 70,000 b/d from April. It marks the highest monthly average since the US in December lifted 40-year-old restrictions on most oil exports.

Canada remained the largest recipient of US exports in May at 308,000 b/d.

Canada imports US crude to supply the eastern part of the country, which lacks the necessary pipeline and rail infrastructure to receive oil from western Canada.

The second highest volume of US exports went to the Netherlands, with 110,000 b/d. Other European destinations included the United Kingdom with 36,000 b/d; Italy with 23,000 b/d; and France with 19,000 b/d.

US crude exports are benefiting from interest from Latin American refiners, which use light sweet crude imports to blend with their heavy oil output. Several Latin American countries imported US crude in May including Colombia with 16,000 b/d; Nicaragua with 12,000 b/d; and Peru with about 11,000 b/d.

Latin America may eventually become a major market for the US given the relatively short shipping distances and expected declines in Colombian and Mexican output.

Japan was another buyer of US crude in May, importing 29,000 b/d. China received about 16,000 b/d.

US exports are mainly made up of light sweet WTI, Eagle Ford and Bakken crudes, as well as sour Alaskan ANS and Gulf coast grades. About 54pc of US crude exports from January-May 2016 loaded on the US Gulf Coast, the EIA said.