SunSirs: US Crude Oil Exports to Europe Hit a Two-year Low in June

https://www.chemnet.com   Jul 05,2024 SunSirs

According to foreign news on July 3rd, traders and analysts reported that in June, crude oil shipments from the United States to Europe fell to a two-year low as European buyers purchased cheaper regions and West African oil.

According to data from ship tracking company Kpler, US crude oil exports to Europe slowed to 1.45 million barrels per day last month, the lowest level since July 2022. This is a 14% decrease from May and a 27% decrease from June 2023.

The reason for the decline in exports is the narrowing of the price difference between the US benchmark WTI crude oil and the European benchmark Brent crude oil. Due to the weakening of North Sea crude oil prices, Brent crude oil futures experienced an average decline rate faster than WTI in May.

The narrowing of the price difference between the two benchmark crude oils makes it difficult for the United States to profit from exporting crude oil to Europe.

Last month, the US crude oil exports to all destinations were 3.94 million barrels per day, lower than May's 4.21 million barrels per day.

The majority of exports to Europe are WTI Midland crude oil, which has become the main raw material for European refineries. Due to the rapid increase in shale production, the United States has become a major exporter of oil.

As WTI inflows into Europe continue to increase, this level will be included in the spot Brent crude oil price benchmark by pricing firm S&P Global Commodity Insights in 2023, which means that fluctuations in US exports may have a broader impact on global oil prices.

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