<article><p class="lead">US crude exports rebounded to above 3.2mn b/d in July, with China as the top buyer.</p><p>Domestic crude exports averaged 3.24mn b/d in July, up from 2.75mn b/d in June, according to trade data released today by the US Census Bureau. The increase followed four straight months of declines as efforts to combat the Covid-19 pandemic slashed global demand. </p><p>China was the top destination for US crude for the third consecutive month, with about 578,000 b/d in July, but that total was down from 657,000 b/d in June and off from a record 1.26mn b/d of US crude headed to China in May. </p><p>Canada was the second top destination for US crude loaded in July, at about 425,000 b/d, and the Netherlands was third with 330,000 b/d.</p><p>Total US crude exports in July were up from 2.7mn b/d a year earlier. </p><p>US exports to China have been volatile this year. The record high 1.26mn b/d in May was sharply up from just 114,000 b/d in April, 108,000 b/d in March and compared with zero in January and February.</p><p>Exports to China were expected to start ramping up at the start of this year after Beijing and Washington signed an interim trade deal that included commitments to purchase US energy products. But the timeline was delayed by the Covid-19 outbreak which caused many refiners in Shandong province to slash run rates because of travel restrictions. Fuel demand now is recovering in China.</p><p>US exports of crude and other commodities to China <a href="http://direct.argusmedia.com/newsandanalysis/article/2133529">have picked up</a> in recent months. An analysis of shipping fixture reports shows at least 12 very large crude carriers (VLCCs) are on subjects to load up to 25mn bl, or almost 835,000 b/d, of crude, at the US Gulf coast for China this month.</p><p>This comes as Beijing is encouraging state-owned firms to step up US loadings in an effort to show progress in the interim trade deal. The pick up in US crude purchases has earned Beijing praise from US trade officials — but not the White House. President Donald Trump ramped up criticism of China at the Republican national convention and said he delayed trade talks with China, even though US and Chinese officials met as scheduled to review the trade deal.</p><p>In addition, the US <a href="http://direct.argusmedia.com/newsandanalysis/article/2137160">plans to step up</a> the format of economic discussions with Taiwan, in the latest move calculated to anger Beijing.</p><p>Since the US lifted 40-year-old restrictions on most oil exports in December 2015, US crude — primarily light crude — has been exported to countries around the globe.</p><p>For the full year of 2019, US crude exports averaged 2.98mn b/d, an annual record.</p><p>The monthly trade data comprises several categories of oil, including crude under 25°API, crude that is 25°API or higher, and condensate derived wholly from natural gas.</p><p class="bylines">By Eunice Bridges </p></article>
