Energy - - Dec 30,2016
According to the weekly government data issued on Thursday, the exported amount of gasoline and diesel last week has surpassed record values in the United States.
It was reported that around 8 million barrels of gasoline and close to 10 million barrels of diesel were exported last week by the refineries setup in the U.S.
At present, the U.S. export amount of refined products is surging as refineries are operating in a high power mode. Moreover, the U.S. has been oversupplied with crude oil and gasoline.
As per analysts, a major share of the exported fuel has perhaps gone to Mexico and several other destinations in Central and South America.
Currently, the gasoline exported per day accounts to 1.1 million barrels, which rose from 795,000 barrels a day in the previous week. Based on the data acquired from the Energy Information Administration, close to 472,000 barrels a day was exported at the same time last year. This is indeed a significant sign of expansion which is strongly acknowledged by the oil market.
Tom Kloza, head of global energy analysis at Oil Price Information Service said: "We have never exported more gasoline and distillates than we did last week.” He further added, there is no doubt that it is a sure shot record.
Kloza also mentioned that Mexico has progressively become a destination for U.S. gasoline exports, due to the inefficient nature of the refineries in that region which operate at about 50 percent capacity; it is far less in comparison to the refineries in the United States.
The Gulf Coast receives heavy crude from Mexico for refining purposes. In the month of September, a quantity of over 500,000 barrels a day was exported to the U.S. from Mexico.
Kloza thinks that the domestic demand is quite irregular; moreover, he expects the demand for gasoline in January to be unsteady.