U.S. crude oil exports reached 3.5 million barrels per day in September 2023, an increase from 3.4 million barrels per day in August. This figure is still below the peak export level of 4.4 million barrels per day in May of this year.
Main Export Destinations
South Korea is recognized as the largest destination for U.S. crude oil exports, receiving 568,600 barrels per day. Following that, the Netherlands ranks second with imports of 459,000 barrels per day. Additionally, Japan, France, Canada, and the United Kingdom are among the largest recipients of U.S. crude oil.
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Increase in Exports to Asia
Exports to Asia increased in September. Exports to Northeast Asia rose from 793,000 barrels per day in August to 1.1 million barrels per day. Similarly, exports to Southeast Asia increased from 292,000 barrels per day to 528,000 barrels per day, and to the Indian subcontinent from 68,000 barrels per day to 220,000 barrels per day.
The increase in export volumes to Asia is mainly due to previous contracts that were signed before the doubling of tanker freight rates on routes from the U.S. to Asia. Disruptions in the Strait of Hormuz have pushed Asian refiners towards U.S. crude oil as an alternative supply source, but its impact on the tanker market has gradually harmed the economics of these trades.
Tanker Freight Rates and Their Impact
Tanker freight rates for routes from the U.S. to China significantly increased in September. For example, rates for the route from the U.S. to China rose from $79.21 to $156.19 per ton. Additionally, rates for the route from the U.S. to Singapore increased from $75.51 to $152.49.
This rise in rates has led to the closure of deals for U.S. crude oil exports to Asia, while business calculations favor the transfer of oil to Northwest Europe, especially considering stronger refining margins in that region.
European Market Situation
Statistics show that refining margins for WTI MEH crude oil to Northwest Europe increased from $44.13 per barrel in August to $47.47 per barrel in September. In contrast, the refining margin in Singapore decreased from $29.13 to $23.09 per barrel.
Overall, this report indicates that U.S. crude oil exports continue to rise, but there are economic challenges arising from increased tanker freight rates and competition in global markets.
Read more: The International Energy Agency is taking action to accelerate the withdrawal from oil reserves · Iran's attacks on tankers in the Strait of Hormuz intensify ahead of the return of oil exports
