Favorable freight economics have helped drive up demand for light, sweet US crude oil in Europe and an expanding list of countries, including Germany, are looking to import barrels from the US Gulf Coast. USGC-to-Europe crude flows have been on the rise recently, with some market participants expecting up to 800,000 b/d to land in Europe in March. At least 5.2 million barrels (roughly 740,000 b/d) of crude was sent from the US to Northwest Europe and Mediterranean during the week ending January 11, according to S&P Global Analytics data. In October, the latest month for which data is available, an average 580,000 b/d of US crude was sent to Northwest Europe and the Mediterranean, according to the Energy Information Administration. Rotterdam is the main destination for US oil in Europe and an average of 1.7 million barrels a week has flowed into the Netherlands from the US during the past six weeks. The UK is also a major destination, averaging about 1 million barrels a week during the past six weeks. There has been a noticeable increase in flows to Italy, with about 1.5 million barrels arriving there for the week ending January 11. That is about triple the… continue reading
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Source: CTRM Center