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(Reuters) – Exports of U.S. crude oil climbed to the highest level in over a year and a half in September, ship tracking data showed, as U.S. refineries began seasonal maintenance and Asian demand increased.
U.S. crude exports rose to an average of 4.2 million barrels per day in September, the highest since February 2024, according to data from ship tracking firm Kpler. Exports had eased in July to their lowest levels in nearly four years on low domestic supplies and as Asian and European buyers found cheaper alternatives.
The spread between global benchmark Brent and U.S. West Texas Intermediate crude futures widened in August, when the bulk of the trades for September were executed, averaging minus $3.79, the widest in four months. A wider spread makes it more attractive to economically ship barrels across the Atlantic. Exports to South Korea climbed to 690,000 barrels per day in September, the highest on record. South Korea has agreed to purchase liquefied natural gas or other energy products from the U.S. to the value of $100 billion.
FIRST US CRUDE EXPORT TO PAKISTAN
September was also marked by the first export of U.S. crude to Pakistan after a landmark trade deal. The country ordered a second shipment that sailed in September after finding its debut purchase commercially viable. Overall, shipments to the country totaled 1.9 billion barrels, or 62,000 bpd. Indian refiners also bought more cargoes of U.S. crude oil, drawn by the competitive prices, and pressure from the U.S. that doubled its tariffs on Indian imports to 50%, citing New Delhi’s buying of Russian oil.
Exports to Australia rose to around 79,000 bpd, their highest since March 2024, while those to Europe eased 11% to 1.7 million bpd in September from August. Shipments to China were set to resume in October after seven months of no shipments, with volumes expected to reach as much as 335,000 bpd, Kpler said, citing fixtures data. China, the world’s biggest consumer of oil, had halted purchases after February in response to escalating trade tensions. Last month, U.S. President Donald Trump said China’s President Xi Jinping agreed during a call to meet face to face in South Korea to discuss the trade conflict.
“The renewed flows come amid signs of easing tensions between Washington and Beijing,” Kpler said in a post on X.
While trade deals could contribute to incremental shipments, higher shipping costs and relatively high prices for West Texas Intermediate crude threaten to shut the U.S.-Asia oil arbitrage for November.
Domestic demand should also increase after the turnaround season over the coming weeks when refineries conduct maintenance on plants and equipment, reducing the availability of barrels for export, analysts with Energy Aspects said in a note.
Reporting by Arathy Somasekhar in Houston; Editing by Liz Hampton and Barbara Lewis
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