US Seaborne Crude Oil Exports Up 51%

Maritime Activity Reports, Inc.

February 12, 2020

© Mitya Nevsky / Adobe Stock

© Mitya Nevsky / Adobe Stock

December could boast another all-time high for US seaborne crude oil exports, totaling 13.9 million metric toes and exceeding the previous October record by almost a million metric tons. In 2019, 133 million metric tons of sweet US crude oil was exported by sea, a 51% increase from 2018.

Due to the US shale revolution, the country became a net seaborne crude oil exporter in October 2019, and the record-breaking exports in December solidified the trend, as imports for the month amounted to 11.5 million metric tons crude oil. BIMCO expects the US to become a net seaborne crude oil exporter on an annual basis for the first time in 2020.

Asia and Europe remained the largest import regions of US crude in December, accounting for 38% and 41% respectively. The long-haul trips to Asia, with South Korea as the largest regional US crude importer, generate a positive ton-mile upside for the crude oil tanker market.

Under the first phase of the US-China trade agreement, China has pledged to buy an additional $52.4 billion worth of US energy goods, spread out over a two-year period. BIMCO expects at least half of the extra energy purchases to be crude oil. The long-haul nature of the US-China trade provides a net positive for the oil tanker segment, but it remains to be seen whether the deal will result in the creation of new trade or merely serve as a diversion of existing trade flows.

Maritime Reporter E-News subscription

Maritime Reporter E-News is the maritime industry's largest circulation and most authoritative ENews Service, delivered to your Email five times per week

Subscribe for Maritime Reporter E-News