Huge GoM crude shipments to Asia

NEW YORK/SINGAPORE – Major oil and trading houses are set to ship an unprecedented volume of American crude oil to Asia in coming weeks that would boost higher flows to the region due to higher prices from OPEC production cuts. Traders estimated as many as 900,000 barrels a day is set to leave the U.S later in February. The estimated volume would be the highest monthly level on record, according to the U.S. Energy Information Administration. The influx may create a supply surplus in Asia, possibly pushing prices for regional grades lower. U.S. crude cargoes, which will include light and heavy grades, are tentatively scheduled to reach China, Japan, and Singapore, according to trading sources. Some exports are also headed to Europe and Latin America. Mercuria has booked the Front Balder, a Suezmax, to send crude from the Gulf of Mexico to Qingdao, China, according to sources. It appears to have stopped in Colombia along the way. BP Plc is sending the Cap Guillaume, a Suezmax, from the GoM to Singapore next week. (Source: Reuters 02/03/17)