Blog

Basrah Medium has become the largest export grade from southern Iraq and has carved a market with Chinese refiners. Basrah Light has seen its volume sharply reduced but the quality of the crude has stabilised. 2022 should see Basrah Light fade into the background, with SOMO promoting Basrah Medium as its flagship grade.

US imports for the first 7 months of the year were fairly stable compared to the full year of 2020, down only 99 kb/d, a slower pace of decline than in previous years. There is a clear trend towards more purchases of FSU and African grades, at the expense of Middle Eastern grades, whilst the Americas remain the major source of crude supply for the US. The resilience in US imports may fade in the second half of the year as the country passes peak summer demand.

Chinese crude oil imports for the countries covered by Petro-Logistics decreased in Q2'21 compared to the first quarter of the year, on the back of apparent destocking and stricter rules for independent refiners. Looking ahead, independent refiners might buy fewer barrels, as a high price environment tends to deter the purchase and stocking of crudes.