Crude oil, gasoline, propane, distillate all set new highs

While American oil producers may still have to deal with lower for longer oil prices, crude exporters are having a record year, according to a note by the EIA.

Exports of crude oil, gasoline, propane and distillate each reached record highs in the first half of 2017. The U.S. has taken advantage of the lifted crude export restrictions, and sent an average of 0.9 MMBOPD abroad in the first half of 2017. This is 300 MBOPD higher than was exported in the first half of 2016. Canada remains the largest recipient of crude exports, receiving 248 MBOPD, but China is gaining ground. The East Asian nation received 163 MBOPD of American crude, 154 MBOPD higher than in the first half of 2016.

U.S. Petroleum Exports Setting Records

Source: EIA

Distillate exports are growing quickly as well. Increased demand from Central and South America drove American distillate exports to grow by 14% in the first half of 2017, reaching a record 1.3 MMBPD. Mexico remains the largest destination for U.S. distillate, as declining domestic production combined with expanding demand drives the country to import increasing amounts of products.

U.S. gasoline exports reached an average of 756 MBOPD, 3% higher than in the first half of 2016. This record was set despite consistent strong domestic demand, making it even more significant. Mexico was also the largest importer of American gasoline, receiving 53% of all gasoline exported by the U.S. Mexico has recently reformed its gasoline market, allowing companies other than PEMEX to import petroleum products, which may have helped boost demand.

U.S. Petroleum Exports Setting Records

Source: EIA

Propane exports grew in the first half of 2017 as well, rising to 913 MBPD. This is 15% higher than the 793 MBPD that was exported in the first half of 2016. This growth is due to increased demand from Asia, which accounts for 76% of the increased exports.

U.S. Petroleum Exports Setting Records

Source: EIA


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