U.S. crude oil exports to Europe declined to a two-year low in June, according to data from ship tracking firm Kpler. Exports fell to 1.45 million barrels per day (bpd) last month, down 14% from May and 27% from June 2023.
The drop in U.S. crude shipments to Europe was driven by a narrowing price differential between the U.S. benchmark West Texas Intermediate (WTI) and the European Brent crude benchmark. As Brent prices fell at a faster pace than WTI in recent months, the arbitrage opportunity to profitably export U.S. crude to Europe diminished.
Traders and analysts told Reuters that European buyers have been favoring cheaper regional North Sea crudes as well as oil grades from West Africa over more expensive U.S. barrels. The U.S. has become a major global crude exporter in recent years thanks to the shale oil boom, with WTI Midland crude becoming a staple for European refiners.
However, the inclusion of WTI Midland in the Dated Brent price assessment by S&P Global Commodity Insights in 2023 means that fluctuations in U.S. export volumes can now have broader implications for global oil prices.
Total U.S. crude exports to all destinations fell to 3.94 million bpd in June, down from 4.21 million bpd in May, the data showed.