OPEC cuts boost US, Brazil, and North Sea oil flows to Asia

Crude oil exports to Asia from the US, Brazil and the North Sea have jumped 55% in the first four months of 2017, according to the latest figures from Vortexa.* The figures point to the continued effect the agreement between OPEC and 11 non-OPEC member countries to curb production is having on supply movements, says the oil markets analytics platform

Vortexa CEO Fabio Kuhn comments: ‘As OPEC cuts take effect, non-OPEC countries are filling the growing gap in Asian oil demand. The US, Brazil and the North Sea have provided the vast majority of new barrels to Asia among non-OPEC countries, particularly when comparing oil flows between the first quarters of 2016 and 2017. Oil exports to Asia, in particular China and South Korea, from the US and Brazil were already growing, but flows at these volumes are unprecedented and we believe that this is the beginning of an enduring trend.’

He continues: ‘We have seen US crude exports to Asia increase almost sevenfold when compared to the same time period last year, with the US now averaging 222,000 b/d. Brazilian exports have seen a more than 50% increase for the same time period, now supplying an average of 588,000 b/d to the region. Asia’s demand for oil has also taken a significant amount of North Sea barrels away from their traditional European market, with an average of 398,000 b/d going to Asia in the first four months of 2017.’

*Vortexa claims to be the first analytics platform in the energy sector to use AI, deep learning algorithms and Bayesian reasoning to reveal the past, present and future movement of oil globally.