The US crude export in Asia may rise in second quarter of 2019, as sellers are anticipating a weaker demand in United states and there had been a steep decline in freight costs, multiple trading and shipping sources confirmed on Wednesday, the 9th of January, 2019.
According to the sources, the US crudes may offer 50 cents a barrel lower from a month earlier, cracking to be more competitive against the oils from Middle East.
Multiple US crude grades are exceedingly popular in Asia, including the light oils like West Texas Intermediate and heavier grades like Mars and Southern Green Canyon. Citing the potentiality of US crudes in Asia amid a lower freight cost, an oil analyst at analytics firm Genscape, David Arno said, "There is the potential for Q2 U.S.
crude exports to Asia to be higher year-on-year if the WTI/Brent spread remains in the range it has in recent months and with the lower freight rates." “There are a few variables, though, with the ongoing U.S-China trade war and the potential for the waivers for Iranian crude exports to Asian countries to not be extended,” he added, though, the Iranian oil might not be a major problem, since US sanctions had already crippled the payment methods for Iranian oil purchases.