The US takes profits from European refineries

In July, Europe reduced imports of American oil, as its price became less attractive for refineries in the production of diesel fuel. At the same time, American companies have increased diesel exports.

According to Vortexa, in July, Europe reduced imports of oil and condensate to 10.5 million barrels. This is the lowest figure since October 2021. Compared to last year, purchases dropped by 1 million barrels per day.

Imports from the United States accounted for more than half of the decline, Vortexa notes. Shipments from the other side of the Atlantic Ocean were the lowest since December 2022.

One of the reasons is the rise in prices for American WTI crude oil, which is why the difference in value between raw materials from the United States and North Sea Brent dropped from $ 4.8 per barrel to $ 2.6. The difference between the cost of oil purchased by Europe and the diesel fuel received has also decreased. If a year ago it was $ 28 per barrel, then on July 22 it was $ 15.

"European refineries have access to sufficient reserves. Therefore, with weak demand, they do not need to buy if prices are not favorable," Vortexa writes in its weekly report.

The situation with a decrease in demand for WTI oil for European refineries is being used by suppliers of American petroleum products.

"The supply of diesel fuel from the United States heading to Europe has more than doubled this month to 517 thousand barrels per day. In June, they amounted to 330 thousand barrels per day. The July figures are the highest level since July 2018," S&P Global reports.

The agency notes that the share of the United States in Europe in diesel fuel has increased to 38% and is almost equivalent to that occupied by Russia — 40%. According to S&P Global, American petroleum products partially replace supplies from the Middle East, where part of the refinery is undergoing preventive maintenance.

As the ship broker Banchero Costa writes in a weekly report, the United States has become the main beneficiary of sanctions against Russia and the reduction of OPEC+ oil production. The country accounts for 9.5% of global shipments of raw materials. In 2023, oil exports increased by 19.5% to 197 million tons. At the same time, 45% of American raw materials are now sent to Europe.