EIA: US crude oil exports reached a record in 2023

Growth in crude oil production in the US has supported increases in US crude oil exports. In 2023, crude oil production reached a record-high 12.9 million bpd in the US, a 9% (1 million bpd) increase from 2022. Many US refineries are optimised to run heavy, sour crude oils, but most of the crude oil produced in the US is light, sweet crude oil, creating export incentives for market participants.

The top regional destinations for US crude oil exports since 2018 have been Europe as well as Asia and Oceania. Europe became the top export destination in 2023 following the effects of Russia’s full-scale invasion of Ukraine and the inclusion of West Texas Intermediate (WTI) crude oil in Dated Brent. In 2022, US crude oil exports to Europe increased significantly following Russia’s full-scale invasion of Ukraine and subsequent EU sanctions banning imports of seaborne crude oil from Russia (adopted June 3, effective December 5). These effects of the sanctions contributed to continued growth in US exports to Europe in 2023. In 2023, US crude oil exports to Europe averaged 1.8 million bpd, slightly more than US exports to Asia and Oceania of 1.7 million bpd.

Another factor affecting the volume of US crude oil exports to Europe is the inclusion of WTI crude oil in Dated Brent, a European crude oil benchmark. Prior to May 2023, the price of Dated Brent was determined based on a basket of different European crude oils. Starting in May 2023 (for physical delivery in June), WTI cargoes delivered to Rotterdam, the Netherlands, were included, likely attracting additional volumes to Europe.

The WTI crude oil to be included in determining the Dated Brent price is delivered into Rotterdam, a large crude oil storage and trading hub in the Netherlands. The Netherlands received more US crude oil exports than any other country in 2023, averaging 652 000 bpd. The combination of sanctions against Russia and US exports reacting to WTI’s inclusion in Brent contributed to US exports to the Netherlands increasing 82% (293 000 bpd) in 2023 compared with 2022, the largest volumetric growth for any country.

China received the second-most US crude oil in 2023, averaging 452 000 bpd, more than double 2022 volumes. China’s crude oil imports in 2023, the most since at least 2005, also included significantly more oil from Russia, according to data from China’s General Administration of Customs. Refinery expansions and initiatives to reopen the economy after China’s government eased COVID-19 mobility restrictions drove the rise in China’s crude oil imports. In addition, increased crude oil imports also helped increase commercial and government crude oil stockpiles in China, according to trade press.

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