/Reuters Agency
U.S. crude exports reached their highest level in over a year and a half in September, according to ship tracking data, due to the start of seasonal maintenance at U.S. refineries and increased Asian demand.
Shipments of crude from the North American country rose to an average of 4.2 million barrels per day in September, the highest point since February 2024, according to data from ship tracking firm Kpler.
In July, exports had fallen to their lowest level in nearly four years due to tight domestic supply and Asian and European buyers finding cheaper alternatives.
The difference between the global benchmark Brent and U.S. crude futures West Texas Intermediate widened in August, when most of the deals for September were executed, averaging -$3.79, the widest in four months. A larger difference makes it more economically attractive to send barrels across the Atlantic.
Exports to South Korea increased to 690,000 barrels per day in September, the highest level on record. South Korea agreed to purchase liquefied natural gas or other energy products from the United States worth $100 billion.
First U.S. crude export to Pakistan
September was also marked by the first U.S. crude export to Pakistan following a historic trade deal. The country ordered a second shipment that set sail in September, after deeming its first purchase commercially viable. In total, shipments to the country amounted to 1.9 billion barrels, or 62,000 barrels per day.
Indian refineries also bought more shipments of U.S. crude, attracted by competitive prices and pressured by the United States to limit Indian imports to 50%, citing New Delhi’s purchases of Russian oil.
Exports to Australia increased to around 79,000 barrels per day in September, their highest level since March 2024, while those destined for Europe decreased by 11%, falling to 1.7 million barrels per day compared to August.
Shipments to China are scheduled to resume in October after a seven-month hiatus, with volumes that could reach up to 335,000 barrels per day, according to scheduling data cited by Kpler.
China, the world’s largest oil consumer, had suspended purchases after February in response to rising trade tensions. Last month, U.S. President Donald Trump reported that China’s President Xi Jinping agreed during a call to meet face-to-face in South Korea to address the trade conflict.
“The renewed flows come amid signs of easing tensions between Washington and Beijing,” Kpler noted in a post on X.
Although trade deals could contribute to a gradual increase in shipments, high transport costs and the relatively high prices of West Texas Intermediate crude threaten to close the oil arbitrage opportunity between the United States and Asia by November.
Domestic demand is also expected to increase after the maintenance season to be carried out in the coming weeks, when refineries perform work on their plants and equipment, which will reduce the availability of barrels for export, Energy Aspects analysts said in a note.
