Daily Energy Report
Quality of US crude imports, Red Sea more dangerous, US refinery capacity, Exxon vs Chevron, China’s grid issues, Turkey-Somalia deal, Nickle prices, Cobalt prices, and more.
Chart of the Day: Quality of US Crude Oil Imports
Summary
Figure (1) above shows US crude oil imports by API gravity. One thing is clear: as the shale revolution took hold, light crude imports almost vanished and most of US crude imports were heavy and medium. Sulphur is not shown on the chart, but most imports were sour.
EOA’s Main Takeaway
Many of our readers are familiar with the hashtag #Crude_Quality_Matters. It matters on several fronts. For one, it answers the question why the largest oil producer in the world and the third largest exporter is importing oil. The US exports light sweet crude and imports heavy/medium sour. Shale produces light sweet crude and a massive amount of NGLs.