US SPR crude cargoes heading toward Europe

Sour crude cargoes from the US Strategic Petroleum Reserve (SPR) are traveling to Europe, helping supplement feedstocks for refiners seeking alternatives to Russian crude supply amid the conflict in Ukraine.

The TotalEnergies-chartered Aframax Seaqueen is expected to arrive at Rotterdam around 23 May after departing from Beaumont, Texas, earlier this month, according to vessel tracking data. Market participants expect the tanker to be carrying a cargo of Big Hill Sour crude from the US SPR.

Two 625,000 bl parcels of Big Hill Sour for delivery onto a vessel were awarded in the latest emergency drawdown sale from the SPR at $1-1.50/bl discounts to the Argus Mars volume-weighted average. Both cargoes were awarded to Atlantic, which is the trading arm of TotalEnergies.

Meanwhile, the Aframax Sea Holly is expected to arrive in Trieste, Italy, around the same time after loading at Freeport, Texas, in late April. The tanker is chartered by Phillips 66 and is carrying Bryan Mound Sour crude, according to Vortexa.

Phillips 66 purchased a 600,000 bl of Bryan Mound Sour for delivery onto a vessel at the Enterprise Seaway terminal at Freeport in April or May as part of the first 30mn bl emergency SPR release earlier this year.

The company was also awarded four 250,000 bl cargoes for delivery onto a vessel in the same auction, but destinations for the smaller parcels remains unclear.

By Amanda Hilow and Benjamin Peyton