US crude exports fall from record high

US crude exports in January fell from a record high while staying above 3mn b/d, according to trade data released today by the Census Bureau.

Domestic crude exports averaged 3.25mn b/d in January, down from a record 3.67mn b/d in the previous month. January exports were was up from about 2.6mn b/d a year earlier.

Canada was the top destination for US crude in January, taking about 587,000 b/d, followed by South Korea with about 552,000 b/d and the Netherlands with 297,000 b/d.

China imported zero US crude in January. Exports to that country have been volatile amid the ongoing US-China trade war.

Exports to China were expected to start ramping up this year after Beijing and Washington in January signed an interim trade deal that included commitments to purchase US energy products.

But the first US crude shipment to China this year is not expected to load until April as many refiners in Shandong province slash run rates as ongoing travel restrictions — intended to contain the spread of the coronavirus — reduce jet fuel demand, contributing to overflowing inventories.

Although there are early indications of demand recovery in China, the virus is now having a similar impact in the second-top importer of US crude, South Korea.

Total US exports have risen in recent months as the start of three new large pipelines move more Permian basin crude to the US Gulf coast.

For the full year of 2019, US crude exports averaged 2.98mn b/d, an annual record. The 2019 total is up by about 1mn b/d from 2018.

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.

The monthly trade data includes several categories of oil, including crude under 25°API, crude that is 25°API or higher, and condensate derived wholly from natural gas.

By Eunice Bridges