The US Bay Recording is looking for the middle, S.American oil to compensate for Venezuela, Mexico’s loss
The US Bay Coastal Penyakan takes a higher volume of Middle East and South American crude oil to compensate for the loss of Venezuela and Mexican barrels, according to ship tracking data, a solution that may be short -lived if the US allows some rough venezuelan that is approved to return to the market.
The shock in the trade flow reflects the lack of medium and heavy raw values at the Gulf Coast Key purification center that has struggled in recent months to secure adequate supply in the midst of Mexican’s production and challenges, and the Washington pressure strategy in the energy industry approved by Venezuela.
The US Department of Finance in March revoked the main license that allowed several companies to export Venezuelan oil and fuel to the US after President Donald Trump criticized OPEC Nation’s notes on migration and democracy.
However, the government is now preparing to provide new authorization to the main PDVSA partners managed by Venezuelan State to enable them to operate with limitations, which can include oil exchanges, five sources close to the problem said this week.
The US imports around 175,000 barrels per day (BPD) on average this year’s Venezuelan crude oil before the license was revoked, contributed about 16% of the import of Gulf Coast oil, according to data from the KPler research company.
Meanwhile, the popular Mexican heavyweight Maya imports have dropped to 172,000 BPD so far in July, the lowest in the record due to a decrease in output and quality problems that have cut interest in class.
To replace this volume, Penyking Gulf Coast uses other South American producers such as Colombia, Brazil and Guyana, with imports in July reaching the highest in more than five years.
Severe and high shipping of crude oil from Colombia, including Castilla and Vasconia values, more than doubled to 225,000 BPD so far in July, the highest monthly rate in three years.
In the same period, some refiners also increased medium imports, lower sulfur, crude oil from Guyana such as Unity Gold and Payara Gold to around 95,000 BPD, while heavy oil, high solfur from Brazil, including Pergrino, rose 58% to 57,000 BPD.
The import of bay coastal oil from the Middle East, especially Iraq Qaiyarah, Eocene Kuwait and Arab Light Sour Sour Sour Saudi, also increased sharply this month to 212,000 BPD, the highest since January.
Most of the crude oil produced in the United States is mild and low sulfur, not ideal for refineries in the Bay of the US which usually prefers to process heavier oils.
Turning to the rough level of very different characteristics can operationally challenge and limit production, shrinking margin.
If Venezuelan oil is approved back to the US market through the exchange of Washington referees, many gulf coast refiners may return to the weight value of their choice, which helps their margin.
Source: Reuters
