Latest News

US crude exports reach a 1.5-year high due to strong Asian demand and US refinery maintenance

Ship tracking data revealed that U.S. crude exports reached their highest level since over a year-and-a-half in September as U.S. refining plants began seasonal maintenance, and Asian demand increased.

According to Kpler, a ship tracking company, U.S. crude oil exports increased to an average 4.2 million barrels a day in September. This is the highest level since February 2024. Exports in July had fallen to their lowest level in almost four years due to low domestic supplies, and Asian and European buyers finding cheaper alternatives.

The spread between Brent crude, the global benchmark, and U.S. West Texas Intermediate oil futures, which is the most widely traded in the world, increased in August when the majority of trades were made for September. It averaged minus $3.79 - the largest in the last four months. It is more economical to ship barrels over the Atlantic with a wider spread. Exports to South Korea reached a record high of 690,000 barrels a day in September. South Korea has committed to buying liquefied gas and other energy products worth $100 billion from the U.S.

First US crude export to Pakistan was made in September after a landmark deal. After determining that the first purchase was commercially viable, Pakistan ordered a second shipment in September. Overall, the country received 1.9 billion barrels of oil, or 62,000 barrels per day. Indian refiners bought more U.S. crude, attracted by competitive prices and the pressure from the U.S., which doubled tariffs on Indian imports, citing New Delhi’s purchase of Russian oil.

Exports to Australia reached 79,000 bpd - their highest level since March 2024 - while exports to Europe fell 11% from August to 1.7million bpd. Kpler, citing data from fixtures, said that after seven months without shipments to China, volumes were expected to reach up to 335,000 bpd. China, which is the largest oil consumer in the world, had stopped purchasing oil after February due to rising trade tensions. Donald Trump, the U.S. president, said last month that China's President Xi Jinping had agreed to meet in person with him to discuss trade issues during a phone call.

Kpler wrote in a blog post on X that "the renewed flows come amid signs easing tensions" between Washington and Beijing.

Although trade deals may contribute to increased shipments, shipping costs and the relatively high price of West Texas Intermediate crude could shut down the U.S. - Asia oil arbitrage in November.

Analysts with Energy Aspects wrote in a report that domestic demand will also rise after the turnaround period, which is when refineries perform maintenance on their plants and equipment. This reduces the barrels available for export. Reporting by Arathy S. Somasekhar, Houston; Editing and proofreading by Liz Hampton and Barbara Lewis

(source: Reuters)