Crude imports rise as fall turnaround season ends: In the LOOP

Crude imports into the Louisiana Offshore Oil Port increased by 4.628 million barrels in November, as refinery maintenance season came to a close and amid a relatively stable Dubai/WTI spread.

The move higher also comes as traders seek to draw down inventories to lower year-end tax bills.

In November, LOOP took in 11.256 million barrels, compared with only 6.628 million in October, according to US Customs data. Of November imported volumes, 9.331 million barrels were supplied by Middle East producers and 1.924 million barrels came from Latin American suppliers.

Increasing refinery run rates contributed to the uptick in imported barrels, as regional refiners completed fall maintenance periods.

Run rates increased 521,000 b/d from October 6 to end December 1 at 1.255 million barrels, according to the US Energy Information Administration.

As a result, USGC crude storage levels decreased 14.34 million barrels from October 6 to end December 1 at 217.797 million barrels.

Cushing, Oklahoma, crude stocks fell 8.223 million barrels during the same time period to 55.561 million barrels for the week ended December 1.

A relatively stable Dubai/WTI swap spread has encouraged imports of Dubai-based medium and heavy sour Middle Eastern barrels into the USGC.

Dubai's premium to WTI has widened only 10 cents/b since the start of October to its current value of $3.47/b.

The 'In the LOOP' Americas crude oil wrap runs each Monday in Crude Oil Marketwire, North American Crude and Products Scan and on the Platts Global Alert. You can read the FAQ: USGC LOOP Sour crude here and find the full special report LOOP Sour Crude: A benchmark for the future here. Also be sure to download our LOOP app by searching for 'Platts LOOP' in your app store.