• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes The Inconvenient Truth Of Electric Cars
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 4 hours Here we go folks, the wish of so many: Pres. Trump threatens to lessen US security role in Strait of Hormuz, unveils sanctions
  • 3 hours Climate change & Wildfires: More Wildfires To The Western U.S., Will Affect Tens Of Millions Of People
  • 6 hours Wonders of Shale - Gas, bringing investments and jobs to the US
  • 4 hours Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 12 hours Hard To Believe: UAE Will Work To Defuse Middle East Tension
  • 7 hours The Plastics Problem
  • 1 hour The Strait of Hormuz is the world’s most important oil transit chokepoint
  • 8 hours Looks like Trump is putting together a "Real" Coalition to protect Persian shipping lanes. Makes perfect sense. NO Fake "Coalition's of the Willing" UPDATE REUTERS Pompeo "Sentinel Program"
  • 1 hour Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 10 hours Cherry Picking Climate Data
  • 14 hours Oil Demand Needs to Halve: Equinor
  • 14 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 6 hours Is $60/Bbl WTI still considered a break even for Shale Oil
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

U.S. Oil Exports Eat Into OPEC Market Share In Asia

Increased U.S. crude oil exports to Asia, supported by a wide WTI-Brent spread, are eating into Asian market shares of OPEC and Russia, the cartel’s ally in the production cut pact.

The United States is expected to export 2.3 million bpd of crude oil in June, including 1.3 million bpd bound for Asia, according to estimates by a senior executive at a U.S. oil exporter who spoke to Reuters.

U.S. crude exports hit a record high 2.566 million bpd in the second week of May, EIA data shows.

The record-high U.S. oil production and the emerging constraints in the takeaway capacity has pushed WTI Crude to the widest discount to Brent Crude in three years—at around $9 a barrel, while Brent prices have been supported by geopolitical concerns of possible supply disruptions from the Middle East and plunging production in Venezuela.

Asian refiners have seized the opportunity to boost the cheaper U.S. crude oil imports and are cutting some pricier imports from the Middle East, particularly after Saudi Arabia’s recent pricing policies that raised prices for the Asian markets.

“We’re diversifying a lot to other regions. If Saudi Aramco still doesn’t reduce prices next month and ADNOC [Abu Dhabi National Oil Company] follows, we will increase our U.S. crude purchases,” a Southeast Asian oil buyer told Reuters. Related: Maduro Vows To Double Oil Production With Help From OPEC

The biggest refiner in Asia—China’s Sinopec—is a case in point of how U.S. oil is snatching market share from both Saudi Arabia and Russia. Sinopec is said to be slashing by 40 percent its imports from Saudi Arabia in June for a second month running, because of unjustifiably high prices from the Kingdom.

At the same time, Sinopec will raise its U.S. oil imports to a record-high next month, two sources told Reuters last week. Unipec, Sinopec’s trading arm, has bought 16 million barrels—equal to around 533,000 bpd—of U.S. crude oil for June loading after the Chinese government encouraged it to buy more U.S. oil.

“It is just business, and it was mainly to do with wide Brent/WTI spread,” a Unipec source told Platts last week, adding that the company planned to continue buying such large volumes going forward.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News