US refined products exports rise: EIA

OREANDA-NEWS. July 01, 2016. US refined products exports rose again with a 4.42pc increase over that prior week, driven mostly by demand from Mexico, according to US Energy Information Administration (EIA) data.

Refined products exports hit 3.894mn b/d for the week ending 24 June with the biggest component in the export offerings consisting of diesel fuel, according to the EIA. Distillate fuel oil exports increased 10.78pc to 1.305mn b/d. Finished motor gasoline exports increased 5.61pc to 395,000 b/d. Jet fuel exports decreased 9.21pc to 138,000 b/d.

Exports this year have been substantially higher in the first quarter than at the same point a year ago. Year-to-date total exports at the end of March stood at 411.9mn bl, 14.2pc higher than the 2015 number of 360.74mn bl. If the trend persists, total refined products exports for 2016 could reach a record level of nearly 1.8bn bl.

Mexico has been a primary driver of the recent increase in exports. For the month of March, exports of petroleum products increased by nearly 65pc to 887,000 b/d compared to the same period in 2015. This is also a 41.5pc growth over the 5-year average for March. Most of this growth can be attributed to a surge in finished motor gasoline demand. According to the EIA, the country imported 355,000 b/d of gasoline in the month of March. This is the highest level of gasoline exports to Mexico since December 2010, and the second highest level to date.

In South America, gasoline exports slid in the first quarter to 83,000 b/d, a 30pc decrease over the prior year. Distillate fuel oil on the other hand showed an increase in the region. At an average of 422,000 b/d, exports of distillates to South America are up 12pc compared to the first quarter of 2015.

South America remains the largest importer of US distillates, but in March, European demand was up substantially. The US exported 350,000 b/d of distillate fuel oil to European nations that month. This was a 54pc increase over exports to the region in March of the year before.

As the South American economy cools, exports may continue to divert to European an Mexican markets.

Asian export demand has also exploded, increasing by nearly 59pc in March to 832,000 b/d. This growth comes almost entirely from LPG demand. China, Japan, South Korea and Singapore had a combined first quarter LPG export demand of 414,000 b/d. This is nearly triple the demand in the first quarter of 2015.