The oil trading industry will gather in London for its annual IP Week, in September. The U.S. has been able to increase its market share in Europe.
The U.S. is slowly inching forward in exporting more to Europe. However, Russia and Iraq are still the largest exporters to Europe. Shipments have hit a new record. For the month of January alone, the U.S. has provided 630,000 barrels per day to Europe.
Sanctions imposed on Iran crude has made it easy for the U.S. to gain access to Europe. Recently, sanctions have been imposed on Venezuela which has further accelerated imports from Washington.
For the year 2018, the U.S. has supplied about 430,000 bpd to Europe. The quantity exported to Europe has almost doubled, say reports from Refinitiv Eikon.
Russian oil traders feel that the excess supply from the U.S. puts pressure on all other grades of oil.
Through the OPEC pact, all countries, both OPEC and non-OPEC have agreed to cut down production by almost 3 to 4 percent. This cut in production had removed the supply glut in the market, which in turn has helped to stabilize crude prices at $60 per barrel. However, this has also helped the U.S. to gain a higher market share.
The U.S. supplies crude oil to Italy, France, and Spain, limiting supply from Russia and Iran. WTI crude is imported by Hellenic Petroleum in Greece. The Swiss Varo Energy gets oil from the U.S. Britain gets U.S. oil from Exxon Mobil and Essar Oil.
As regulations for marine fuel are increased, the need for light barrels has also increased, which is another reason for the increase in demand for U.S. oil, as it is very light.
All types of sanctions and cuts in oil production benefit the U.S. say oil traders. In 2018, WTI crude supplied to Italy, the UK and Netherlands have increased drastically.