US February crude exports fall with harsh weather

US crude exports fell by 14pc in February from the previous month as severe winter weather disrupted pipeline flows, shut in production and closed ports during part of the month.

Total domestic crude exports averaged about 2.65mn b/d in February, down from 3.08mn b/d in January, according to trade data released today by the US Census Bureau.

India was the top taker of US crude, averaging about 463,000 b/d in February, staying in the number one spot for a second consecutive month. Loadings to the Netherlands were a close second at 462,000 b/d.

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

US crude headed to China in February averaged 269,000 b/d, down by about 120,000 b./d from the previous month.

China's intake of US crude was volatile last year but exports to that country rose sharply in May-December 2020, averaging 690,000 b/d during that time, buoyed by an interim trade agreement signed last year with the administration of former president Donald Trump. The deal required China to buy $27bn of US crude and other energy commodities in 2020 and $42bn in 2021. But loadings last year fell short of this target, despite volumes almost tripling from 2019.

US and Chinese diplomats met last month for a two-day meeting in Anchorage, Alaska, the first under the administration of President Joe Biden. The Chinese delegation was hoping to persuade the US to lift punitive tariffs on imports from China, which Beijing has reciprocated. But the US merely promised to review the issue.

Overall US crude exports have proven resilient in the face of the Covid-19 pandemic, climbing to a record annual high in 2020 despite the sharp drop in global demand and a string of tropical storms and hurricanes that disrupted shipping in the Gulf of Mexico. Crude exports averaged 3.2mn b/d in 2020, up from 2.98mn b/d in 2019, the previous record high.

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