A Shaking of the US Gulf Coast Crude Oil Cocktail

The increase in domestic crude oil production is widely reported to have flipped US import requirements on their heads. While this holds true for light/sweet crude oil producers, there appears to be even more dependence on heavier/sourer crude oil suppliers in spite of the shale oil boom. With traditional light/sweet suppliers like West Africa and Europe out of the fray, it is easier to observe the net results of forces that dictate from where the US sources its imports. Investments and long-term relationships will support long-haul trade to the US, benefitting VLCC ton-mile demand. However, Canada’s position as a supplier to the US Gulf Coast presents looming competition to such seaborne imports. Download here