NEWS
Transportation   Oil  

US Crude More Attractive for Asian Customers

US crude exports to Asia are set to swell over March and April as a drop in freight rates makes US cargoes more competitive against barrels from Asia or the Middle East, according to market participants and shipping fixtures Friday.

Industry sources indicated that US crude continued to attract the attention of plenty of Asian buyers as various flagship North American export grades have been consistently trading at a discount against comparable light and medium Persian Gulf grades, S&P Global Platts reported.

"Arbitrage economics remain highly favorable for more US crude purchases. The latest OPEC cut seems to be keeping the Dubai price complex relatively expensive," a senior official at Seoul-based Korea Petroleum Association said.

Freight rates from the US Gulf Coast to Asia have fallen by about a third since early-December, making the case for greater loadings of US crude to the region.

Around 17 very large crude carriers have been fixed to load crude from the US Gulf Coast to Eastern destinations for February-loading cargoes, shipping reports showed, with many more likely booked outside of reported fixtures.

For January-loading cargoes, 16 VLCCs were seen carrying US crude from the US Gulf Coast to eastern destinations.

December-loading US crude cargoes, meanwhile, saw only seven VLCCs leave the US Gulf Coast for the East.

News No: 3539
Date: 2019/02/04 - 07:35
News Source: Financial Tribune

US Crude  Petroleum  Asia  shipping  OPEC 

Comments:

Leave a Comment:

   
   
   
 

Oil Market Forecasters Bearish on 2019

The three most closely watched oil market forecasters are all bracing for a significant upsurge in non-OPEC supply growth in 2019 but differ on the extent that global oil supply will outweigh demand.
 

Brent Briefly Touches $65

Brent crude oil briefly reached 2019 highs above $65 per barrel on Friday, as OPEC-led supply cuts and the announcement of a higher-than-expected cut by Saudi Arabia this week encouraged investors.
 

IMF: South Arabia Needs $80-85 Oil to Balance 2019 Budget

OPEC’s biggest producer Saudi Arabia would need oil prices at $80-85 per barrel in order to balance its 2019 budget, Jihad Azour, director of the Middle East and Central Asia Department at the International Monetary Fund has told Reuters.
 

IEA: Global Oil Supply to Swamp Demand

The global oil market will struggle this year to absorb fast-growing crude supply from outside OPEC, even with the group’s production cuts and US sanctions on Venezuela and Iran, the International Energy Agency said in a report on Wednesday.
 

Barkindo Says OPEC is No Cartel

OPEC Secretary-General Mohammad Barkindo said the exporting group was not in the business of fixing oil prices, when asked to comment on a US House committee passing a bill targeting OPEC oil supply cuts.
 

Iran’s Larijani Calls for Closer Economic Cooperation with Japan

Iranian Parliament Speaker Ali Larijani, who traveled to Japan on Monday, highlighted the importance of bilateral relations between the Islamic Republic and the East Asian country in various spheres, the economy in particular.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners