China to Cut US Oil Imports Amid Trade Spat
Chinese oil buyers will keep taking crude from the United States through September, but plan to reduce future purchases to avoid a likely import tariff amid a trade spat between the world's two largest economies, multiple industry sources said.Beijing has put U.S. energy products, including crude oil and refined products, on lists of goods that it will hit with import taxes in retaliation for similar moves by Washington.Beijing did not specify when it will impose a 25 percent tax on oil…
Newest Outpost for US Crude Exports: India
India is set to emerge as a key market for American crude exports in coming months, as refineries in that country are ramping up "test" purchases of U.S. grades to diversify their imports. U.S. exports recently set a weekly record with nearly 2 million barrels of crude a day sent overseas. But shipments to India have been rare, with just a few deliveries since the U.S. lifted its ban on crude exports in late 2015. Indian refineries are starting to increase purchases as the country seeks to secure more supply from outside the Middle East. Refiners are testing both U.S.
IOC to Lift U.S. Crude for December Delivery
Indian Oil Corp, the country's largest refiner, has bought two new types of U.S. crude for December delivery as it tests different grades from the United States, trade sources said on Tuesday. IOC bought 1 million barrels each of U.S. Southern Green Canyon (SGC) and WTI Midland crude likely from a Chinese trader, the people said, speaking on condition of anonymity. The purchase was in addition to 2 million barrels of Basra Light crude to be delivered in the same month. The United States has become a new source of crude supply for Asia since Washington lifted a ban on crude exports in late 2015. India joined other Asian countries in buying U.S. crude in the fourth quarter to widen its import sources as well as to reduce trade surplus with the United States.
US Crude Sails to Asia as OPEC Weighs More Cuts
Oil tankers carrying around 10 million barrels of U.S. crude are en route to Asia, according to shipping data and trade sources, as U.S. producers take advantage of favorable prices to ship to the region while OPEC ponders further supply cuts next week. At least eight tankers are in transit, sources said and the shipping data in Thomson Reuters Eikon showed, with one of them carrying the first ever cargo of Southern Green Canyon crude purchased by Japanese refiner Cosmo Energy. Another contains the first Alaskan North Slope cargo to arrive in Asia in eight months.
US Coast Guard to Break Ice in Green Bay
The U.S. Coast Guard is scheduled to commence icebreaking operations Thursday in the waters of Green Bay in Lake Michigan. The Coast Guard said these operations will likely occur in areas commonly used by recreational users, such as but not limited to, the Fox River, southern Green Bay and the Sturgeon Bay Ship Canal.
BP Amoco Announces Four Major Deepwater Finds
BP Amoco announced four significant oil discoveries in the deepwater Gulf of Mexico, including the largest made to date by any company. These major exploration successes add to an already significant reserves base in the deepwater Gulf and demonstrate BP Amoco's leading position in this technically challenging area. Largest of the discoveries is the Crazy Horse prospect, located in 6,000 ft. water depth in the Boarshead basin, 125 miles south-east of New Orleans. With estimated recoverable oil of at least one billion barrels of oil equivalent (boe), it is the biggest discovery ever in the Gulf deepwater. BP Amoco is operator and holds a 75 percent interest. Partner Mobil holds 25 percent equity. The other three discoveries are located in water depths varying from 4,000 to 6,500 ft.
