Cheaper US crude loading logistics likely to lure more Asian buyers Back to News & Events List


Apart from competitive spot price indications, lower cost of oil transportation from the US Gulf Coast to the Far East could provide Asian refiners with more reason to shop for US crude oil going forward, as a few loading terminals in the USGC expect to handle large dirty tankers in the coming years.

The successful VLCC crude loading operation at the Louisiana Offshore Oil Port last month would further boost Asian end-users’ interest in US crude as logistics costs could be cut significantly, industry sources said.

Shell was responsible for the recent VLCC loading of crude at the LOOP terminal and the new logistics option will set the tone for US-Asia crude flows to become the “new normal,” Mark Quartermain, vice president of crude trading and supply at the oil major said at the S&P Global Platts Asian Refining Summit in Singapore Thursday.

In addition, the outlook for more upgrades in various crude loading terminals in the USGC over the coming years would also draw plenty of Asian buyers’ interest, Daniel Ahn, deputy chief economist at the US Department of State, said on the sidelines of the Platts event.

“Both the private and public sector in the US are keen to invest in [maritime] infrastructure upgrades … there is strong appetite for that,” Ahn said.

 

Source: shippingtribune


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