OPEC’s reduced oil production and US sanctions on Venezuela and Iran have translated into a considerable fall in crude imports into the Louisiana Offshore Oil Port so far this year. January to date, 8 million barrels of crude have been delivered at LOOP’s delivery point in Morgan City, Louisiana, down 66% from the 24 million barrels recorded in the same period of last year, according to the latest S&P Global Platts Analytics and US Customs Bureau data. In early January, OPEC members committed to cut production levels in line with 1.2 million b/d in the first six months of 2019. As a result, volumes exported by some of its members to the US have diminished to historic levels. In January and February, for example, there have been no imports of Saudi crude to LOOP. The last Saudi cargo it received, some 1.6 million barrels of Arab Light, was unloaded December 19. However, LOOP has gone longer stretches without receiving Saudi crude in the past: none was received from that country for the first five months of 2018. The lack of Saudi crude coming into LOOP – and the US Gulf Coast more broadly – is a stark contrast to previous… continue reading
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Source: CTRM Center