By Arati S. Nayer and Mariana Paraga
Houston (Reuters) – US oil refineries are turning to oil in Iraq and Canada to replace the hurricane-laden Gulf of Mexico, with Asian buyers monitoring Middle East and Russian levels, analysts and traders say.
Royal Dutch, the largest producer in the Gulf of Mexico in the United States, said this week’s damage to a marine facility would limit Mars’ raw materials early next year. Honey Ginger American oil is widely used by US Gulf filters and companies in South Korea and China at two major destinations for US Gulf exports.
The United States currently exports more than 3 million barrels of oil a day, mostly from the Gulf of Aden. Returning to general pre-epidemic demand, oil refineries need to compensate for Mars’ closures.
Traders say some US filters, especially Iraqi Basra, are looking for replacements for the fourth quarter of the BDP, a loss of up to 250,000 barrels a day. Others have sourced raw materials from American warehouses.
Bassara Dfdf has come forward during the past riots. A.D. Iraq has stepped up its cargo shipments after the US imposed sanctions on Venezuela in 2019. Canadian heavy oil suppliers have also benefited.
Exxon Mobil and Plasid Filters have acquired SPR oil from the United States Strategic Petroleum Solution (EMR).
US Gulf Raw Trader “Asked from SSS for Urgent Raw Materials to Replace Mars Barrels! Others buy Bashara supplements in October, and generally the sour creams are under pressure, so they are reasonably priced, ”he said.
Earlier this month, Mars crude was sold for up to $ 1.50 premium on WTI, but returned to pre-wave levels on Wednedsay, with US barrels priced at $ 2.25. Most of the nine American factories that stopped production during Idaho have returned to production.
A trader says that he bought a refinery marathon petrol for Basra for October. Traders who are able to process and blend heavy creams have also shown interest in Canadian and Latin American standards, traders added. He refrained from commenting on the marathon.
Preliminary data from the US Energy Information Administration as of Tuesday show that goods from Mexico and Brazil will be available after the storm.
According to freight tracking company Vortexa, up to 250,000 bpd of crude oil is exported, and about 80,000 bpd is typically shipped to Asian filters.
Kepler Oil analyst Matt Smith said South Korea accounted for two-thirds of Mars exports this year. China’s Unique and South Korea Energy have stepped up their purchases of Mars before the storm to take advantage of favorable prices.
UNEPEC has bought 200,000 tons of Russian Urals in October due to price differences.
South Korea’s second-largest filter, the GSL Caltex Corporation, was about to be canceled by the end of November, and the company said it did not need a replacement yet, according to traders.
Unipek parent, Synopec and GSS
(Reporting by Arat S. Nyer in Bengalguri, Mariana Paraga, Houston and Singapore Florence Tan, edited by David Gregory)