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US Expected to Conquer European Oil Market

US Expected to Conquer European Oil Market
US Expected to Conquer European Oil Market

US crude oil and condensate exports to Europe are expected to hit an all-time high of around 550,000 barrels per day in April, according to shipping programs. Traders expect the record pace to continue this year, as US oil is growing popular with European refiners, often at the expense of oil cargoes from OPEC nations and Russia.

According to trade flows monitor in Thomson Reuters Eikon, between January and April this year, US crude oil and condensate exports to Europe jumped fourfold compared to the same period of 2017 to 68 large Aframax tankers, Oil Price reported. While Europe was the destination of 7% of all US oil exports in 2017, the percentage has increased to 12% this year, according to Reuters data. The UK, Italy and the Netherlands are top destinations in Europe and BP, Exxon and Valero have been importing large quantities of US oil, traders told Reuters.

WTI, Light Louisiana Sweet, Eagle Ford, Bakken and Mars are the most popular US crude grades in Europe, as a growing number of European refiners have started to test US crude and a wider WTI-Brent spread has been supportive of increased and cheaper US oil supply into Europe compared to Russian, Nigerian and other crude grades.

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