China falls from top US crude exports spot

US crude exports fell by about 6pc in November with China's intake declining sharply.

Total US crude exports averaged 2.73mn b/d in November, down from 2.91mn b/d in October, according to trade data released today by the US Census Bureau.

China had been the top destination for US crude in the previous six months, but its intake fell to about 342,000 b/d in November, down by about half from the previous month.

India took over as the top destination for US crude loaded in November taking about 430,000 b/d. The exports to India included about 85,000 b/d of heavier crude.

State-controlled Indian refiners last month expanded their import portfolio to include more US grades, with IOC now including West Texas Light (WTL) as an eligible grade in their weekly import tenders and Hindustan Petroleum (HPCL) issuing a unique tender that sought Mars for its Vizag refinery in January and February.

There has also been an upswing of heavy sour Canadian grades like Cold Lake and Western Canadian Select (WCS) deliveries to the US Gulf coast for re-export purposes to Indian and Chinese refiners seeking high-bitumen yields.

Canada was the second top destination of US crude in November at about 413,000 b/d, and the Netherlands was third with 393,000 b/d.

Total US crude exports in November were down from 3.1mn b/d a year earlier.

Since the US lifted 40-year-old restrictions on most oil exports in December 2015, US crude has been exported to countries around the globe. For the full year of 2019, US crude exports averaged 2.98mn b/d, an annual record.

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.

By Eunice Bridges and Amanda Hilow