Asia’s appetite for US crude oil posted a positive growth in the first quarter of 2022 despite lucrative Russian offers, according to S&P Global Commodity Insights.
That said, North American supplies could face more competition in the second quarter as refiners will continue picking up barrels from the non-OPEC supplier until they remain outside sanctions and are available at substantial discounts.
According to the latest data from the US Census Bureau, total US crude oil exports rose year on year by 5,44,000 barrel per day year-on-year to 3.3 million barrel per day in Q1.
Asia accounted for 46 per cent of those exports, with volumes rising to 90,000 b/d year on year to 1.5 million b/d in that period.
India was the top destination of US crudes over the first two months, with shipments of 476,000 b/d, but US crude exports to India dropped to 229,000 b/d in March.
“With India taking less US crude, other Asian and European refiners will look to import more from the US as more crudes will be available following significant SPR releases, in addition to growing domestic production,” said Lim Jit Yang, adviser for Platts Analytics at S&P Global Commodity Insights.