For the seventh month in a row total US crude oil exports excluding china hit a new all-time high reaching 7.9 million tonnes in September.
The determined development that saw no US seaborne exports of crude oil to China in August, has continued into September. This is despite crude oil not being a part of the ‘official trade war’.
“The trade war between the US and China is now impacting trade in both tariffed and some un-tariffed goods with both countries looking elsewhere for alternative buyers and sellers.
Tonne mile (TM) demand generated by total US crude oil exports has risen 17% from August to September, but is down 4.8% from the record high in July.
For the crude oil tanker shipping industry distances often matter more than volumes, with exports of US crude oil to Asia generating 74% of tonne mile demand in September, up from 70% in August," Peter Sand, BIMCO’s Chief Shipping Analyst, says.
In 2017, Chinese imports accounted for 23% of total US crude oil exports. In 2018 that number was 22% during the first seven month, but has dropped to 0% in August and September.
US crude oil exports to any other destination were record high
For the seventh month in a row total US crude oil exports, excluding china, hit a new all-time high reaching 7.9 million tonnes in September.
South Korea has become the largest long-distance importer of US crude oil at 1.1 million tonnes in September, its highest ever level. Similarly, the next top three overseas importers of US crude oil, namely the United Kingdom, Taiwan (both at 0.94 million tonnes) and the Netherlands (0.74 million tonnes) all imported more in September than ever before.
Exports to Asia jumped in June and July, from a 43% share of total exports since the start of 2017 to reach a 56% share. That share was down to 46% in August, but climbed back to 51% in September. The two other major importing regions are Europe (33%) and North and Central America (13%), while South America (2%), the Caribbean (1%) make up the rest - September share of exports in brackets.