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Crude Oil Exports In US Hit New High
At present, many crude oil exporters in the US won’t be worrying about their overfill prevention systems raising the alarm, as their product isn’t staying put for long. According to figures from Gencape, exports of waterborne crude oil reached over 9.025 million barrels at the end of April, reported .
The previous high was 7.264 million barrels, which was recorded at the beginning of March, however, the highest monthly average of barrels exported per day was seen in February. This figure, 858,000, is slightly higher than the average for April, which is 850,000 across the month, however in the last week of the month, exports hit 1.152 million per day.
It’s clear that the current pricing on crude oil has attracted foreign interest, and since the ban on exporting crude oil was lifted in January 2016, the volumes of barrels being sent abroad has almost tripled.
While the majority of US exports are heading to the East Asia market, Saudi Arabia, the world’s biggest oil exporter, has committed to cut its export to this market by seven million barrels in June, according to .
It’s thought that Saudi Arabia’s move is not being taken to loosen its hold on the key Asian market in any way, but to set a trend and start to reduce the world’s oversupply of crude oil, to start to tame fluctuating prices.
How other exporters will react to this news and how they will adapt their supply to this market remains to be seen.