Global LNG trade continues to grow
The United States exports more crude oil than the 12 member countries of the 14 OPEC member countries. Only Saudi Arabia and Iraq exported more than 3 million barrels per day of crude oil to the international market, and the export volume of other member countries did not reach this level.
The soaring US crude oil exports and the inevitable comparison with all OPEC members (except Saudi Arabia, Iraq and Iran) highlight the importance of US crude oil in the international market.
However, analysts believe that the export volume of up to 3 million barrels per day can not last long. In fact, weekly US crude oil exports will fluctuate significantly, and in order to maintain a level of 3 million barrels per day for more than a week, US oil producers must face several obstacles. However, the trend line still points to a higher export volume, which is closer to the weekly export volume of 2 million barrels per day compared to the export volume of 1 million barrels per day last year.
The previous US export record was set in the second week of May this year, as much as 2.566 million barrels per day. In 2017, US crude oil exports exceeded 2 million barrels per day in just one week, but this year has exceeded 2 million barrels per day for eight weeks, including 3 million barrels per day last week.
According to data released by the US Energy Information Administration, during the week ending June 22, US crude oil exports were 3 million barrels per day, compared with 528,000 barrels per day last year. In the four weeks ending June 22, the average US crude oil export volume was 2.28 million barrels per day, compared with 581,000 barrels per day in the same period last year.
In recent weeks, WTI crude oil prices have been much cheaper than Brent crude oil prices, with a spread of up to $9/barrel, supporting US oil exports. The price difference of this size has made US oil prices cheaper, boosting the demand for US in the Asian and European markets. The rising US oil output (which touched 10.9 million barrels per day this month), coupled with bottlenecks in pipeline transportation in the Permian basin, further widened the gap between WTI crude oil prices and Brent crude oil prices.
However, in the past week, the difference between WTI crude oil prices and Brent crude oil prices has narrowed significantly, in part due to the break of the Syncrude oil sands facility in Fort McMurray (output of 360,000 barrels per day). for. At least until July, the output of the Canadian oil sands facility may remain offline.
Statistics show that Canada delivers about 3.5 million barrels of oil a day to the United States, accounting for the vast majority of its exports. With the increase in US oil output, US imports have also decreased. In the week of the 22nd, the daily import volume of the United States was 8.4 million barrels.
According to reports, the decision to export US oil in the coming weeks and months is not just the price difference between WTI crude oil price and Brent crude oil price. The Permian transport bottleneck may limit traffic from the Texas inland to the Gulf Coast.
“The fact is that we are loading and exporting oil on the Gulf Coast of Texas. The biggest problem for exporters is that it is difficult to move oil from the Permian basin to the Gulf Coast due to lack of pipeline capacity. "The investment company Lipow Oil Associates president Andrew Lippo said.
US oil exports exceed the vast majority of OPEC member countries