Oil: U.S. crude closes gap with Brent, exports make it look superior of the two
Investing.com — U.S. crude jumped Wednesday while prices for Brent remained lame. On the surface, it was a catch-up to the previous session when the international benchmark was up strongly while U.S. markets were closed for the 4th of July holiday. But a closer look at export numbers suggest a trend may be forming.
Government data revealed U.S. crude shipments for the week ended June 23 at or near record with a daily volume of 5.338 million barrels. In the previous week to June 16, the volume was 4.543M barrels per day. Earlier for the week ended June 9, exports were at 3.27M daily versus a prior 2.475M.
Simply, the data from the Weekly Petroleum Status Report of the Energy Information Administration, or EIA, showed U.S. crude exports have more than doubled over the course of the three weeks, going from just under 2.5M to almost 5.4M.
And it’s a phenomenon that could grow as the Saudis continue slashing a one million barrels daily a month — on top of earlier commitments to cut 1.5M monthly — to try and get $80 pricing or more for a barrel Brent that will help push quotes on their own Arab Light crude.
“Some will say this is perhaps an aberration in the data, but I think a trend might be performing here as U.S. crude is finding not just more demand in Asia from all these stated Saudi cuts, but also new homes in Europe,” said John Kilduff, partner at New York energy hedge fund Again Capital.
“So, if you ask me, WTI is looking to be the more superior of the two crude brands here.”
New York-based WTI, or West Texas Intermediate, was up $2.07, or 3%, to $71.86 per barrel by 12:45 ET (16:45 GMT).
London-based Brent showed a gain of 39 cents, or 0.5%, to $76.64.
Market participants were also on the lookout for the next EIA
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