• 3 minutes Boris Johnson taken decision about 5G Huawei ban by delay (fait accompli method)
  • 6 minutes This Battery Uses Up CO2 to Create Energy
  • 10 minutes Phase One trade deal, for China it is all about technology war
  • 12 minutes Trump has changed into a World Leader
  • 6 hours Indonesia Stands Up to China. Will Japan Help?
  • 5 hours Shale Oil Fiasco
  • 2 mins We're freezing! Isn't it great? The carbon tax must be working!
  • 6 hours Might be Time for NG Producers to Find New Career
  • 9 hours Angela Merkel take notice. Russia cut off Belarus oil supply because they would not do as Russia demanded
  • 11 hours Environmentalists demand oil and gas companies *IN THE USA AND CANADA* reduce emissions to address climate change
  • 3 hours Anti-Macron Protesters Cut Power Lines, Oil Refineries Already Joined Transport Workers as France Anti-Macron Strikes Hit France Hard
  • 11 hours Beijing Must Face Reality That Taiwan is Independent
  • 10 hours China's Economy and Subsequent Energy Demand To Decelerate Sharply Through 2024
  • 5 hours Tesla Will ‘Disappear’ Or ‘Lose 80%’ Of Its Value
  • 1 day US Shale: Technology
  • 2 days Swedes Think Climate Policy Worst Waste of Taxpayers' Money in 2019
Alt Text

Oil Prices Head Lower Despite Small Crude Draw

Oil prices continued to trade…

Alt Text

Oil Is The Only Way Back Up For Venezuela

Venezuela’s economic and humanitarian crisis…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

U.S. Oil Shipments To Asia Set To Rise Soon

A combination of lower shipping costs and lower domestic demand will boost U.S. crude oil exports to Asia, Reuters reports, citing sources from the commodity trading and shipping industries.

Freight costs for shipments scheduled to arrive in Asia in late March and April this year are US$0.50 lower per barrel of oil than they were for shipments scheduled to arrive at refineries in December as buyers were in a rush to secure crude ahead of the Iran sanctions that went into effect in early November.

Since the end of October last year, chartering a Very large Crude Carrier from the Louisiana Offshore Oil Port has fallen by some 40 percent to US$5 million, Reuters Eikon data suggests.

U.S. exports of crude will also enjoy the support of a still sizeable discount of West Texas Intermediate to Brent crude, which is close to US$10 a barrel. WTI is among the most popular U.S. light crude grades with Asian buyers. Other attractive grades include Midland and Eagle Ford in the light crude segment, and Mars and Southern Green Canyon in the heavier segment. “There is the potential for Q2 U.S. crude exports to Asia to be higher year-on-year if the WTI/Brent spread remains in the range it has in recent months and with the lower freight rates,” Reuters quoted a Genscape oil analyst, David Arno, as saying.

Related: Oil Posts Longest Rally In 17 Months

However, headwinds remain, chief among them the development of trade talks between Washington and Beijing. Chinese traders and refiners are still cautious about buying U.S. crude until the trade problems between the world’s two biggest economies are resolved, but if they are, chances are U.S. crude exports would get an additional boost.

Also, if Washington refuses to extend the Iranian crude oil import waivers it granted in November to eight large buyers—including China and India—they will need an alternative source of crude and it might just be the United States.

By Irina Slav 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
Download on the App Store Get it on Google Play