US crude exports hit record level

If there was any doubt the oil market share battle had been consigned to the history books, this week’s EIA data showing US crude exports hitting 2m b/d showed the US oil industry has substantial fight left in it. For reference, Kuwait exported 1.96m b/d on average in 2016. Net crude imports hit 5.23m b/d, their lowest level since 1992 while combined crude and product exports hit over 7m b/d.  Another move upward in crude production to within a hair of its 2015 highs shows the considerable challenge US producers are laying down to OPEC.

US exports are surging

Source: EIA Emirates NBD Research

The dichotomy between crude and products continues to show up in the EIA figures with the crude market looking still bloated while there are some better pictures across the rest of the barrel. Gasoline, jet and fuel oil all appear in much stronger positions on a fundamental basis and with a steady decline in spot crude futures we would expect to see refinery cracks start to reengage with an upward trend.

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