U.S. Gulf Coast crude exports rebounded for the week ended August 14, rising 20% to 3.6 MMb/d (far right in chart below) and breaking away from the steady decline seen in weeks prior. A more telling development, as discussed in this week's Crude Voyager, was the renewed strength in Houston, whose volumes averaged 1.3 MMb/d. Enterprise Houston loadings increased 21%, while Seaway Freeport returned to the export market for the first time in eight weeks. The most notable feature of Houston’s export program was its heavy European tilt. About 93% of volumes were destined for Europe, including cargoes headed to the Netherlands, Spain, Ireland, France, Greece, and the U.K. That concentration highlights the Atlantic Basin’s continued appetite for U.S. crude as geopolitical disruptions constrain competing supplies and exceptionally strong refining margins, as discussed in this week's Tradeview Report, keep refinery demand elevated.
12 of Houston’s 14 vessels loaded last week were Aframax tankers, alongside one Suezmax and one Panamax. That contrasts with Corpus Christi’s greater reliance on VLCCs for long-haul Asian movements and makes Houston less directly exposed to the previous weeks' slowdown in VLCC arrivals into the Gulf. Brent’s premium to WTI widened last week as Middle East supply risks tightened the seaborne market relative to the U.S., improving the relative attractiveness of Gulf Coast barrels overseas, although a flatter WTI curve and elevated Atlantic Basin freight costs could temper future export economics.
