US refineries turn to oil in Brazil, Iraq and Africa to meet demand
After US sanctions restricted the supply of widely demanded product types, as they prepare for a period of peak demand, US oil refiners have turned to a number of less-used suppliers. According to data from Refinitiv Eikon and market sources, assisting heavy and sour oil supplies, Brazil, Iraq, Nigeria and Angola are expected to deliver their largest amounts of oil to the US in more than 18 months this month.
In total, May oil imports from these countries are expected to be more than double April's volume, amounting to around 1,23 million barrels per day (bpd). Included in the shipments are 11 freighters carrying about 600 bpd of Iraqi oil, the highest level coming from the country in a year, Refinitiv data showed.
Imports from these nations jumped from the previous month on account of reduced supplies from Venezuela and Iran, due to US sanctions, and declining OPEC production.
US refineries are also finishing their spring maintenance in preparation for holiday season gasoline demand.
The interruption of US purchases was due to action to stop the flow of dollars to the government of Venezuelan President Nicolás Maduro, which amounted to around 500 bpd last year.
206 bpd of Brazilian oil should arrive in the US in May, the highest since August, and together, producers in West Africa, Nigeria and Angola, should deliver 420 bpd this month, the highest level in 13 months.
The Chevron refinery in Pascagoula, Mississippi, will receive four freighters that will deliver a total of 95 bpd from Iraq, Nigeria and Brasimaiores. According to data from Refinitiv, these are the highest levels of these three countries ever recorded in more than a year.
Two freighters, the Leontios H, with around 500 barrels of heavy oil from Brazil, and the Richmond Voyager, with 1 million barrels of “medium sour” oil from Iraq, unloaded in Pascagoula last week. The Cap Felix, with 1 million barrels of average Nigerian oil, and the Myrtos, with 500 barrels of Brazilian oil, are expected to arrive this month, the data showed.