Australian heavy crude cargoes were seldom supplied to the US Gulf until recently. But with the Chinese slowdown in demand and falling crude oil prices, the Australian heavy sweet crude has eventually entered the competitive market. It has reached the distant destinations such as the US Gulf Coast and West Coast India.
Recently, Valero, a US based refinery has been purchasing 80,000 mt of Australian heavy crude, every six to eight weeks to be delivered to the US Gulf Coast. It was noted to have been loaded during mid-July. Sources told the next heavy crude cargo was scheduled for loading next week from Vincent Port, Australia. The heavy crude is likely being used to blend with lighter crudes from US shale oil fields. Pricing details are unknown as yet.
Valero, an independent refiner, has 15 refineries stretching from California to Canada to the United Kingdom. Through their network of refineries, they have a combined throughput capacity of approximately 2.9 million barrels per day.
Source: Platts
