US crude exports jumped to their highest level on record in May,
coming in at 662,000 b/d, monthly data from the US Energy
Information Administration showed Friday.
Exports are up from 591,000 b/d in April and have been up steadily
from the 392,000 b/d exported in December, when the US lifted all
restrictions on the export of crude oil.
A tight ICE Brent/NYMEX WTI spread through May likely didn't stand
in the way of exports, despite a strong NYMEX discount often making
exports more attractive. That spread averaged just 26 cents/b in
May, compared with $1.33/b in April.
While exports to Canada -- typically the biggest market for US crude
-- remained strong at 308,000 b/d, that represents under half of the
total. In May 2015, Canada took 524,000 b/d of the 531,000 b/d total
from the US.
The Netherlands -- home to the massive Rotterdam port -- imported
110,000 b/d from the US in May, up from 29,000 b/d in April, 20,000
b/d in March and 36,000 b/d in February. While it is unclear which
grades make up the export cargoes, S&P Global Platts data shows WTI
still delivers into Rotterdam at a sizable premium to Russian Urals
and North Sea grades like Forties and Ekofisk.
However, Platts yield data shows WTI should be attractive for
European refiners. Light Houston Sweet -- essentially WTI ex-Houston
-- cracking yields in Northwest Europe have averaged $49.23/b since
July 1, compared with $48.60/b for Urals and $48.47/b for Forties.
Ekofisk has averaged $50/b.
Platts yield data are calculated by applying Platts product price
assessments to yield formulas designed by Turner, Mason & Co.
The US also exported 36,000 b/d to the UK, up from 18,000 b/d in
April.
Curacao -- home to the 335,000 b/d PDVSA-owned Isla refinery --
imported 67,000 b/d from the US in May, down from 90,000 b/d in
April.
Japan took in 29,000 b/d from the US, up from zero in April but down
from 44,000 b/d in March.
--James Bambino,
james.bambino@spglobal.com
--Edited by Jason Lindquist,
jason.lindquist@spglobal.com
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