US petroleum product exports soar in ’15 – EIA

HOUSTON (ICIS)–US petroleum product exports increased throughout 2015, rising to 4.3m bbl/day from 467,000 bbl/day in 2014, the Energy Information Administration (EIA) said on Friday.

In a report, the EIA said the export increase was driven by increased exports of distillate fuel, motor gasoline, and propane, and major recipients of US petroleum export products included Mexico and countries in central and South America.

Distillate fuel oil represented the largest component of petroleum exports, averaging 1.19m bbl/day in 2015, up 85,000 bbl/day from 2014.

The US exported distillate fuel to 88 different countries in 2015, with Mexico representing the top destination, averaging 143,000 bbl/day in 2015, the EIA said.

Distillate exports to central and South America also rose, averaging 595,000 bbl/day in 2015, with Chile representing the region’s largest importer of US distillate, averaging 101,000 bbl/day.

High refinery runs and a warmer-than-usual winter led to US distillate inventories rising above the five-year average, also pushing prices lower, which in turn led to increased exports to western Europe, the EIA said.

In the third quarter, distillate exports to western Europe increased year over year by 80,000 bbl/day, and in the fourth quarter, rose 136,000 bbl/day year on year, the EIA said.

These increased US exports contributed to high distillate inventories in the major refining and petroleum hubs of Amsterdam and Rotterdam in the Netherlands, and Antwerp in Belgium.

Motor gasoline was the second largest US petroleum product export in 2015, averaging 618,000 bbl/day, and exported to 102 different countries.

Mexico was again the largest recipient of gasoline, and central and South America were also major destinations.

Exports of gasoline to Africa decreased by 28,000 bbl/day compared with the previous year, mostly due to lower exports to Nigeria, based on fuel import programme reforms that took place within the country.

Propane exports were similar to that of gasoline, rising to 615,000 bbl/day in 2015, up 193,000 bbl/day from the previous year. Asia received most propane exports, and is expected to be the leading source of global propane consumption growth, with an expanding petrochemical sector as the main driver

The EIA said some of the demand for petroleum product exports in central and South America is a reflection of temporary supply constraints, based on factors such as refinery upgrades and delays.

Photo: This tanker holds diesel (Source: Mark Hunt/REX/Shutterstock)