Baku, Azerbaijan, Aug.21
By Leman Zeynalova – Trend:
US crude oil exports are expected to further increase in the next six months, according to the forecasts of the US JP Morgan bank.
“Data for May demonstrates that the US exported 4.28 million metric tons of crude in May. We expect the next six months to see further increases in crude exports,” said the report obtained by Trend.
However, JP Morgan analysts believe that lower West Texas Intermediate (WTI) pricing in recent weeks is limiting the ability of US shale producers to hedge future production.
Moreover, with the US rapidly approaching the limit of domestic crude processing by refineries, discounts are needed to boost the competitiveness of US crude exports abroad, according to the report.
“WTI has lost more value relative to Brent in recent weeks. This underperformance in WTI prices comes despite a 8.9 mb w/w decline in crude stocks, the largest since last September. This was counterbalanced by weaker-than-expected product supplied levels (a proxy for demand), and increased product and Cushing crude inventories,” said the report.
The WTI price was $48.81 per barrel on August 11, 2017, according to the latest report of the US Energy Information Administration.
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