US Gulf Coast Crude Oil Exports to Hit Record High This Quarter

Exports of crude oil from the U.S. Gulf Coast could hit a record 3.3 million barrels per day (MMbbl/d) this quarter, analysts said on Monday, as Europe chases U.S. crude to offset sanctioned oil.

U.S. exports have risen in the last three months, helped by Washington’s decision to release 180 million barrels of oil from the nation’s Strategic Petroleum Reserve, which have flooded the domestic market.

Exports to Europe are expected to average about 1.4 MMbbl/d this quarter, about 30% higher than the year-ago quarter, while export to Asia is set to drop to under 1 MMbbl/d, according to energy data firm Kpler.

“The 1.53 million bbl/d of U.S. crude exports to Europe recorded in April is the second-highest reading on record,” said Viktor Katona, co-head of crude analysis at Kpler.

Tight U.S. refining capacity also boosted exports, Rystad Energy analysts noted. The United States has lost nearly 1 MMbbl/d of refining capacity since 2020.

“It’s no surprise that government intervention to support crude supplies has resulted in an increase in exports,” said Artem Abramov, head of shale research at Rystad Energy.

Throughput via the Port of Corpus Christi has increased by more than 150,000 bbl/d to reach 1.86 MMbbl/d. Port of Houston exports also have been rising since the third quarter of last year, but remain below pre-pandemic levels, Rystad added.

Crude exports will continue to grow and approach 4 MMbbl/d in the first three months of 2023, Rystad estimates.