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The US Gulf Coast saw its crude oil imports at their lowest level since 1986, in March, as rising domestic production and lower imports from OPEC, including Venezuela, began fundamentally altering crude supplies from the Gulf Coast, EIA said in an analysis. the week.
In March 2019, EIA data showed that crude oil imports from the Gulf Coast averaged 1.8 million barrels per day. This is the lowest level of imports from the Gulf Coast since March 1986 and a drastic reduction from the peak of 6.6 million barrels per day of crude imports in March 2007.
Recent events and long-term trends have altered the supply of crude oil from the Gulf Coast, resulting in lower imports. These factors include this year's US sanctions on imports from Venezuela and above-normal maintenance in refineries in the first months of 2019. OPEC imports on the Gulf Coast also decreased these imports. recent months and years due to the continued reduction in cartel production. In addition, the increase in Texas oil production has significantly increased the supply of light crude oil to the Gulf Coast's domestic market, EIA said.
In the first few months of the year, imports from the Gulf Coast are generally smaller due to refinery maintenance, but this year's forecast maintenance has been above normal. Then the sanctions imposed on Venezuela – which accounted for 20% of all Gulf Coast crude oil imports in 2018 – restricted imports from the struggling Latin American oil producer. The Gulf Coast, which has historically been the destination for 98% of all US crude oil imports from Venezuela, has seen its Venezuelan contribution reduced sharply this year. Related: The flares crisis in the US oil field
Between January and March 2019, oil imports from the Gulf Coast from Venezuela decreased by 498,000 b / d to 47,000 b / d in March. Following the Gulf Coast cuts, Venezuela's average four-week US imports increased from 603,000 b / d for the week ending January 25th to only 12,000 b / d for the week ending May 31, said the EIA.
By contrast, in ten years, crude oil production on the Gulf Coast rose from 2.7 million bpd in 2008 to 7.9 million bpd in March 2019, according to EIA data.
Because of all these factors, crude oil of foreign origin accounted for an average of 36% of Gulf Coast refinery crude oil receipts in 2018, up from 73% in 2008.
In addition, in the last five consecutive months, the US Gulf Coast has exported more crude oil than it imported, according to the EIA, which declared in March 2019 that the region had become net exporter of crude oil at the end of 2018.
By Tsvetana Paraskova for Oilprice.com
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