US crude exports plunge more than 40 per cent in June

The decline in US crude exports was likely caused by May and June Brent contracts trading in a tight band with US crude earlier in the year. Usually, there is a wide premium for Brent over US crude, making exports more economical.

US crude exports down to 383,000 b/d

By Catherine Ngai

NEW YORK, Aug 5 (Reuters) – US crude oil exports plunged by more than 40 percent in June, foreign trade data from the U.S. Census Bureau showed on Friday, after Brent’s premium to U.S. crude hovered in a tight band earlier this year.

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Total exports dropped to 383,000 barrels per day from May’s record of 662,000 b/d, according to data compiled by Reuters. Exports to Canada were 280,000 b/d versus 308,000 b/d a month prior. Exports to United Kingdom were 37,000 b/d, nearly unchanged from May. Meanwhile, exports to Curacao were 17,000 b/d, a sharp drop from May’s 67,000 b/d.

The export declines were likely a result of Brent’s May and June contracts having traded in such a tight band to U.S. crude earlier this year. At one point, Brent even briefly traded at a discount.

Typically, a wide premium for Brent over U.S. crude makes exports more economical.

U.S. Census’ foreign trade oil data is published weeks earlier than closely watched U.S. Energy Information Administration trade figures. The EIA, which bases its numbers on the Census data, will release its monthly crude figures at the end of August.

(Reporting by Catherine Ngai; Editing by Meredith Mazzilli)