# U.S. oil exports to Europe hit record in March on steep discounts Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-21 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Record U.S. Crude Exports to Europe Boosted by Wide Meta Description: Find out how U.S. crude oil trade is booming, with record exports to Europe amidst refinery slowdown and wide Brent-WTI spread. Read more here. URL: https://financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discountshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-20t190502z1lynxmpej2j0tdrtroptp4usa-oil-exports-europe-1736814295056-compressed.jpg) By Arathy Somasekhar HOUSTON (Reuters) – U.S. crude exports to Europe have hit a record 2.1 million barrels per day on average so far this month, spurred by wide discounts to the global benchmark and weaker [oil demand](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high") by U.S. refineries. [Record exports to Europe and China](https://www.financedigest.com/china-records-worlds-first-human-death-from-h3n8-bird-flu-who.html "China records world’s first human death from H3N8 bird flu -WHO") this month reflect the rise of United States in crude oil trade and solidifies its role supplying Europe following Russia’s invasion of Ukraine. A holiday freeze knocked out operations at a dozen U.S. refineries, increasing scheduled plant maintenance and reducing [crude oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") demand that widened U.S. crude’s discount to benchmark Brent. The refining slowdown weighed on U.S. West Texas Intermediate [oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop"), while Brent was supported by declining availability of Russian barrels as well as complications with Norway’s Johan Sverdrup flows, Kpler analyst Matt Smith said. The spread between [West Texas Intermediate and Brent widened to more than $7 at the end](https://www.financedigest.com/londons-west-end-regains-pre-pandemic-buzz-boosting-sales.html "London’s West End regains pre-pandemic buzz, boosting sales") of January, the steepest discount so far this year, prompting a flurry of deals as a wider spread makes U.S. oil cheaper for [foreign buyers](https://www.financedigest.com/foreign-investment-spain-hits-5-year-high-costa-del-sol-winning-second-home-buyers.html "Foreign investment in Spain hits 5-year high, with Costa del Sol winning over second home buyers"). Volumes of [crude oil](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") to Europe, loaded on very large crude carriers (VLCC) that typically carry about 2 million barrels, this month look set to reach a record high, according to Kpler data. Advantage Virtue, a VLCC chartered by BP and loaded at Corpus Christi, Texas, on March 11, was headed to [Britain and set](https://www.financedigest.com/britain-sets-5g-goal-says-no-magic-number-of-operators.html "Britain sets 5G goal, says no ‘magic number’ of operators") to discharge at the end of this month, according to Refinitiv Eikon data. Front Alta, another VLCC chartered by Occidental Petroleum, was headed to Rotterdam, according to Refinitiv and Kpler ship tracking. Occidental declined to comment. BP declined to comment on exports, but pointed to its energy [outlook forecasting](https://www.financedigest.com/elevator-maker-kone-hikes-outlook-as-q1-profit-orders-beat-forecasts-2.html "Elevator maker Kone hikes outlook as Q1 profit, orders beat forecasts") U.S. oil [production growth over the rest of this decade before declining](https://www.financedigest.com/roche-flags-2023-earnings-decline-on-slump-in-covid-products.html "Roche flags 2023 earnings decline on slump in COVID products") and OPEC competing to increase its market share. Export demand has aided [prices for some top](https://www.financedigest.com/4-for-the-price-of-1-what-you-can-buy-in-the-uks-top-northern-cities-for-the-price-of-a-london-pad.html "4 for the price of 1: What you can buy in the UK’s top northern cities for the price of a London pad") U.S. crude grades. The [average price](https://www.financedigest.com/taylor-wimpey-espana-remain-cautiously-optimistic-as-average-selling-price-increases-by-20-4.html "Taylor Wimpey España ‘remain cautiously optimistic’ as average selling price increases by 20.4%") for WTI Midland, pegged at the top U.S. shale basin, has [gained nearly 50% so far this year](https://www.financedigest.com/hong-kong-home-prices-drop-15-6-in-2022-snap-13-years-of-gain.html "Hong Kong home prices drop 15.6% in 2022, snap 13 years of gain") compared to the previous quarter, while WTI at East Houston has gained about 30%. Exports should remain strong in the [months](https://www.financedigest.com/6-months-to-go-until-brexit-and-investor-sentiment-remains-bold.html "6 months to go until Brexit and investor sentiment remains bold") ahead as long as the Brent-WTI spread remains wide, Kpler’s Smith said. While domestic demand is set to [rise in the coming months](https://www.financedigest.com/uk-new-car-sales-rise-17-in-march-best-ever-month-for-evs.html "UK new car sales rise 17% in March; best ever month for EVs") as refinery turnaround season ends and summer driving picks up, supply is also set to increase. U.S. shale producers have been adding to supplies and the Biden administration is due to [sell 26 million](https://www.financedigest.com/britains-superdry-sells-asia-pacific-ip-for-50-million.html "Britain’s Superdry sells Asia Pacific IP for million") barrels of crude oil from the Strategic Petroleum Reserve under a congressionally approved release. (Reporting by Arathy Somasekhar in Houston; Editing by Richard Chang) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---