• 3 minutes UAE says four vessels subjected to 'sabotage' near Fujairah port
  • 6 minutes Why is Strait of Hormuz the World's Most Important Oil Artery
  • 8 minutes OPEC is no longer an Apex Predator
  • 12 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 3 hours Did Saudi Arabia pull a "Jussie Smollett" and fake an attack on themselves to justify indiscriminate bombing on Yemen city population ?
  • 3 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 1 hour California Threatens Ban on ICE Cars
  • 16 hours China Downplays Chances For Trade Talks While U.S. Plays ‘Little Tricks’
  • 21 hours Solar Industry Lays Claim To The 2020s; Kicks Off The Solar+ Decade
  • 20 hours "We cannot be relying on fossil fuels to burn as an energy source at all in our country" - Canadian NDP Political Leader
  • 2 days DUG Rockies: Plenty Of Promise, Despite The Politics
  • 1 day Iran v USA the perfect fire triangle
  • 1 day U.S. and Turkey
  • 19 hours Shell ‘to have commercial wind farms’ by early 2020s
  • 2 hours Global Warming Making The Rich Richer
  • 7 days How can Trump 'own' a trade war?
  • 2 days Dear journalists: say "climate crisis" not "climate change"
Saudi Arabia’s Oil Addiction Won’t End Anytime Soon

Saudi Arabia’s Oil Addiction Won’t End Anytime Soon

Saudi Arabia remains reliant on…

The Marijuana Industry’s Dirty Little Secret

The Marijuana Industry’s Dirty Little Secret

Cannabis cultivation requires enormous amounts…

Australia Starts Importing U.S. Light Crude

tanker at sea

Australia has joined the growing list of U.S. crude oil importers with two tankers currently en route to Down Under with cargoes of light U.S. crude, Reuters reports, citing sources from the commodity trading industry and shipping data.

“Australia’s aging refineries were designed to run regional crude that is typically light and sweet. U.S. crude is a good substitute for typical Australian refinery feedstock,” a Reuters Refinitiv analyst explained. The bulk of U.S. crude oil output is exactly this sort of crude.

Lower freight rates have also helped more U.S. crude reach foreign markets, and as a result of this combination of favorable factors, total U.S. shipments of crude oil to Asia alone could reach 38.1 million barrels in May, according to Reuters calculations. This equals 1.2 million bpd.

However, going forward, shipments could begin declining as the discount of West Texas Intermediate and grades based on this benchmark to Brent crude narrows.

The spread between the two benchmarks used to be so wide it stimulated greater appetite for Gulf Coast grades of crude, Reuters reported yesterday. Yet now, the rally that followed Washington’s announcement that there would be no more Iran sanction waivers for oil importers beginning in May has changed the price dynamic, pushing Gulf Coast grades higher.

“The arb (arbitrage) is only barely open and has been closed to the East regularly over the past few weeks,” one U.S. oil industry source told Reuters. At the same time, another source said that China is getting more interested in U.S. crude after the removal of the waivers, even though it has officially complained about the move to Washington.

China stopped buying U.S. crude in September last year as the trade conflict between the two countries escalated, but earlier this month media reported that Sinopec was due to receive this week its first cargo of U.S. oil since September.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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