US to become net petroleum exporter in Q4 2019

Oct. 25-- Oct. 25--The US is expected to become net petroleum exporter in the fourth quarter of 2019, Trend reports citing the US Energy Information Administration (EIA).

EIA forecasts that continued growth in petroleum product exports, albeit slower than in previous years, combined with increasing US crude oil exports, will result in the United States becoming a total petroleum net exporter. EIA October 2019 Short-Term Energy Outlook forecasts this change to occur in the fourth quarter of 2019.

In the first half of 2019, the United States exported an average of 5.47 million barrels per day (b/d) of petroleum products, an increase of 19,000 b/d (0.3 percent) from the first half of 2018 and the slowest year-over-year growth rate for any half year in 13 years.

Two factors that likely contributed to lower exports were lower US refinery runs in the first half of 2019 compared with the first half of 2018 and slowing global economic growth, which is limiting demand for petroleum products.

In the first half of 2019, increased exports of propane and distillate offset decreased exports of all other petroleum products.

Distillate remained the largest US petroleum product export in the first half of 2019, averaging 1.3 million b/d, an increase of 60,000 b/d (5 percent) compared with the first half of 2018. Distillate has many uses, including transportation, manufacturing, agriculture, and residential, and commercial activities.

Mexico was the largest destination for U.S. distillate exports during the first half of 2019, receiving 290,000 b/d, or 22 percent of total U.S. distillate exports. Aside from Mexico, U.S. distillate exports go mostly to Central and South America, including Brazil (13 percent), Chile (7 percent), and Peru (5 percent). US distillate exports also go to Europe, mostly to the Netherlands (4 percent), which is a transshipment country for some of the U.S. distillate volumes.

EIA forecasts that continued growth in petroleum product exports, albeit slower than in previous years, combined with increasing US crude oil exports, will result in the United States becoming a total petroleum net exporter. The US Energy Information Administration's (EIA) October 2019 Short-Term Energy Outlook forecasts this change to occur in the fourth quarter of 2019. -- Follow the author on Twitter: @Lyaman_Zeyn