US crude is proving more competitive than expected to Asia-Pacific in the wake of the lifting of Washington’s ban on crude exports. Refiners in Thailand, Singapore, Australia, China, South Korea and Japan are now regular buyers of light sweet Permian WTI and Eagle Ford crude and condensate, while medium sour grades from the UG Gulf coast and Canadian heavy sours may start to find their way to Asia’s most complex refineries in India and beyond.
Exports are to accelerate on the back of Opec production cuts, as US shale production returns to growth in a higher price environment. A stronger Dubai benchmark will also render shipments of Atlantic basin crude to East-of-Suez destinations more competitive, making US grades regulars among Asian refiners’ slates. China’s desire to diversify beyond its already varied crude sources is driving refiners like Sinopec to the exciting new frontier of North American crude.
From a pricing perspective, the US Gulf coast is well placed to become the global center for crude benchmarks because of its ample liquidity and the transparency that Argus brings. As pipeline and export infrastructure expands, Texas and Louisiana are replacing the declining North Sea as the world’s prime location for oil price formation because of their promising potential for expansion and growth.
What opportunities are there for you?
For the first time we bring North American suppliers together with Asian consumers to discuss the future of these exciting new flows. Experts will also address freight, storage and the potential effects of a Trump administration on US crude production, transport and export infrastructure.