US crude cargo departs for Croatia

A light sweet crude cargo has departed the US Gulf coast for a rare voyage to Croatia amid a drop in competing Russian supplies.

The Aframax tanker Iasonas finished loading at Corpus Christi, Texas, today and is expected to arrive at Omisalj, Croatia, around 14 July, marking the first US crude cargo destined for the eastern European country in more than a year, according to preliminary tracking data compiled be Argus.

The vessel is likely carrying light sweet WTI, West Texas Light (WTL) or Eagle Ford, which are staple grades out of the Corpus Christi export hub.

This is the fifth US crude cargo shipped to Croatia since the US lifted its ban on oil exports in late 2015, with the first US crude shipment loaded in November 2018, and the most recent cargo prior to this month departing in May 2019.

This month's shipment may have been spurred by lower exports of competing crude and condensate from Russia's Arctic region, which fell by almost 20pc last month to a two-year low, with deliveries suspended to Omisalj and two terminals in the UK.

Omisalj serves the 90,000 b/d Rijeka refinery, operated by Hungarian integrated Mol's subsidiary Ina. But the terminal is also the start of the 400,000 b/d Adria pipeline that heads to Hungary, Slovakia and Serbia. It supplies Mol's 160,000 b/d Szazhalombatta refinery in Hungary and its 120,000 b/d Bratislava plant in Slovakia. The pipeline also supplies Serbian oil firm NIS' 110,000 b/d Pancevo refinery.

By Amanda Hilow