US Crude Flow to Europe Slumps
US crude exports to Europe fell to an 11-month low this month as a shrinking discount and rising shipping costs squeezed demand for US barrels, according to Refinitiv Eikon data and analysts.
The spread between US crude and Brent has narrowed sharply from above $10 per barrel in November to $6.63 on Saturday, the smallest discount for US crude since early August, Reuters reported.
“The arbitrageur has been less workable,” said Olivier Jakob, analyst at consultancy PetroMatrix. “It is not really the period to take a lot of crude.”
Seventeen vessels carrying about 298,000 barrels per day of crude departed from Texas and Louisiana for European ports this month, the fewest since last January, with volumes down from 404,000 bpd last month, Refinitiv Eikon data shows.
US shipments to the European refining and storage hub in Rotterdam fell by more than half from November levels to about 71,000 barrels per day, as crude inventories slumped ahead of end-of-year taxes on crude held in storage.
Freight costs for oil tankers have climbed as producers bid up tanker rates. Some of the tankers were used for floating storage by Iran.
European demand for US crude also was squeezed by high premiums for US Gulf Coast grades, one ship broker said. West Texas Intermediate at East Houston, also known as MEH, traded around a $5 premium to US benchmark crude earlier this week.
source: Financial Tribune
Top News
Six last month
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Gold price faces worst week since 2021 as Fed signals no rate-cut rush
Gold loses some luster after Trump’s decisive win
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Hedge funds slash bullish wagers on gold over Trump election win
Resolute Mining says it will pay Mali $160 million in tax dispute
Families gather at South African mine shaft where hundreds are feared stuck underground
Higher silver supply to reduce global deficit by 4% in 2024
BHP to spend up to $14 billion on Chilean copper expansion
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
China’s germanium, gallium ban could cost the US $3.4 billion
South Africa police standoff with illegal gold miners escalates
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iron ore price flirts with key $100/t level on firm demand, China stimulus hopes
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Iran Alloy Steel Company intends to purchase 12 tons of ferrotungsten through public tender
Iran Alloy Steel Company intends to purchase 150 tons of Low-Carbon Ferro Manganese through public tender
Chile’s rare salt flat fish faces threat from lithium mining project
British Columbia creates new mining ministry to tackle critical minerals amid doubts over capacity
Newmont sells Ontario gold mine to Orla for $850 million
BHP warns Australian mining not ready for low-cost competitors
Resolute Mining says it will pay Mali $160 million in tax dispute
Trump chooses oil fracking boss as energy secretary
Gold loses some luster after Trump’s decisive win
