As discussed in this week's Crude Voyager, despite U.S. Gulf Coast crude exports rebounding for the week ended July 10, activity at Houston's Seaway Freeport and Seaway Texas City terminals weakened. This divergence from the broader export recovery is notable because both terminals have been closely linked to the recent Strategic Petroleum Reserve (SPR) release program. Since early April, increased loadings from the Seaway system closely tracked the acceleration in SPR withdrawals, suggesting that barrels originating from the Bryan Mound storage site were being moved through the Seaway pipeline network for export. As discussed previously, while the Department of Energy (DOE) does not disclose the final destination of individual SPR cargoes, the strong correlation between rising Seaway exports and record SPR drawdowns has made these terminals a clear indicator of emergency crude entering the export market.
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Seaway Freeport Crude Oil Exports Reach Multi-Year High as SPR Draws Accelerate
As discussed in the Crude Voyager Report for the week ended May 29, exports out of the U.S. Gulf Coast (USGC) averaged 5.4 MMb/d, with strength seen across a number of terminals. In the Houston region, the Seaway Freeport Terminal recorded export activity for the seventh consecutive week. While only one Aframax cargo was seen, the terminal's seven-week streak represents its longest period of uninterrupted export activity since 2023, signaling a notable increase in utilization compared with the sporadic loadings observed in recent years.
Big Time – Exchange of Barrels from U.S. SPR Would Drop Stocks to Lowest Levels Since the 1980s
Today, we detail U.S. plans to release 172 MMbbl from the Strategic Petroleum Reserve, examine how it compares with U.S. actions after the Russian invasion of Ukraine in 2022, and why the SPR could drop to levels not seen since the Reagan administration.
Running on Reserve: Crude Oil in the SPR Plummets to a Four-Decade Low
According to the EIA's Weekly Petroleum Status Report (WPSR) released this morning, the Strategic Petroleum Reserve (SPR) recorded its 13th consecutive weekly draw for the week ended June 19, reducing stocks to levels not seen since 1983.
