Crude oil imports into the U.S. Gulf Coast rebounded in the week to Sept. 9, as the effects of a storm in the region faded, according to a report from Thomson Reuters Oil Research and Forecasts on Monday.
The Thomson Reuters Oil Research team forecast the weekly EIA number for PADD 3 imports, which includes “refinery row” in the U.S. Gulf, at 20.2 million barrels last week, up nearly 3 million barrels from the 17.3 million barrels reported by the U.S. Energy Information Administration for a week earlier.
The forecast is solely for waterborne imports focusing on the different PADD regions as defined by the EIA, since the dataset is vessel-based.
The effects of Tropical Storm Hermine interrupted shipping routes and production last week, leading to a massive fall in imports to the region and the largest weekly drop in stockpiles since December 2012. Overall weekly U.S. crude stockpiles tumbled by the most since 1999.
However, the storm eventually turned to the northeast and did not harm key facilities in the Gulf, as many had feared. The immediate rebound in imports, as a result, could trigger a fresh wave of selling in crude, some traders said.
Bloated inventories are still a major concern among oil bulls hoping for a balanced market after grappling with two years of oversupply.
The majority of oil imports into the Gulf region arrive in large vessels. Crude from Canada is transported by pipeline.
Middle Eastern imports into PADD 3 rebounded over 30 percent during the week, led by Kuwait and Saudi Arabia, according to the report.
Last week, one shipment each from Kuwait and Saudi carried about 1 million barrels and discharged in the Louisiana Offshore Oil Port (LOOP), the report said.
Source: Oil news