North America's shale oil boom has started to squeeze Saudi Arabian oil out of the US market in the same way it did with West African crude, IEA says.
LONDON, Sept 11 (Reuters) - North America's shale oil boom has started to squeeze Saudi Arabian oil out of the U.S. market in the same way it did with West African crude, the West's energy agency said on Thursday.
The International Energy Agency also predicted a flood of U.S. gasoline exports to world market.
"In recent years, surging light tight oil production has backed out U.S. imports of West African crude, which are now moving to Asia," the IEA said in a monthly report.
"Saudi exports seem to be showing the beginning of a similar shift," it said, estimating that Saudi exports have likely run below 7 million barrels per day for the last four months, their lowest level since September 2011.
"Exports to the U.S. led the drop amid rising Saudi domestic demand for crude burn and refinery runs," the IEA said. Saudi Arabia was pricing oil out of the U.S. markets by keeping official selling prices high while adjusting them down for Asia, it added.
The North American supply boom has not only cut crude imports into the United States but also turned it into a net products exporter - in sharp contrast with previous decades when it was the largest importer in the world.
"In coming years... U.S. light distillate exports will reach increasingly far-flung markets," said the IEA, which estimates that Canada and the United States could have a surplus of naphtha and gasoline of around 1.3 million barrels per day by 2019.
View Full Article
Copyright 2016 Thomson Reuters. Click for Restrictions.
WHAT DO YOU THINK?
Click on the button below to add a comment.
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Most Popular Articles