• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 8 days America should go after China but it should be done in a wise way.
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in

Alaska’s Oil Exports Double Amid Strong Chinese Demand

Alaska’s crude oil exports have more than doubled this year from 2019, as Chinese refiners are purchasing more Alaskan crude, demand for which on the U.S. West Coast has significantly shrunk in the pandemic.

While demand from U.S. West Coast refiners has been subdued, overall Chinese crude oil imports have held strong during the COVID-19 wave in China early this year.

China’s crude imports then soared in the summer months after refiners took advantage of the cheapest crude in decades in April and purchased crude from various places in the world, including Alaska. The discounts of spot cargoes of Canada’s Cold Lake blend, Alaska North Slope, and Brazil’s Lula grades varied between $5 and $9 a barrel to Brent prices, which were below $30 for most of April.    

According to data from commodities research firm Kpler, cited by Bloomberg, Alaska’s crude oil exports have more than doubled year over year to 15.6 million barrels so far in 2020. This would be the highest level of crude oil exports from Alaska in 20 years.

Most of the crude oil exports from Alaska this year have gone to China, where refiners bought 12.3 million barrels of Alaska North Slope, while the other 3.3 million barrels were exported to South Korea, according to Kpler’s data cited by Bloomberg. In 2019, Alaska exported just around 1 million barrels to China. 

The much higher Alaskan oil exports this year have sent the price of Alaska North Slope to trading at a premium to WTI Crude.

While oil demand in Europe and the United States continues to disappoint, refiners in Asia are racing to procure crude from around the world, giving the oil market some hope that at least in one region, demand is strengthening in the fourth quarter.

As many as 20 tankers carrying U.S. crude oil from the U.S. Gulf Coast are expected to begin their journey to Asia in December, Bloomberg reported on Wednesday, citing shipping programs and shipbrokers.   

ADVERTISEMENT

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment
  • George Doolittle on December 03 2020 said:
    Actual facts.

    Always appreciated .
    Great job.

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News