The Energy Information Administration said the US exported 3.06 million bpd of crude oil in the week ended October 15, up 546,000 bpd from the previous week. This marks the highest weekly export level since the week ended August 13, when shipments averaged 3.431 million bpd. The four-week moving average of US oil exports in the period ended October 15 stood at 2.677 million bpd, up 63,000 bpd from the period ended the prior week. Ship-tracking data showed exports to Europe came in at 1.124 million bpd last week, outpacing exports to Asia at 1.04 million bpd.
Despite the recent increase, US crude exports are under pressure from a narrowing Brent/WTI spread and high freight rates. The spread has narrowed by $1.44 per barrel since October 6 to $2.02 per barrel on October 15, the smallest differential since August 3. The narrower spread means US crude grades become less competitive on the international market in relation to Brent-linked crudes. At the same time, the cost to ship oil in a VLCC from the US to Asia rose 8.9% from October 1 to around $5.5 million on October 30.
