Crude traders have pointed to Europe’s ability to source crude oil from Latin America, the Middle East and the United States as the main reason for European refiners to heave a sigh of relief. Asia, too, has collected less crude than analysts had predicted, thanks to China’s never-ending battle to reach the elusive zero-Covid target. Latin American crude imports into Europe have averaged 313,000 bpd so far this year, up from 132,000, Refinitiv Eikon data showed. In July, the average was well above that, at 600,000 bpd. From the United States, Europe received an average of 1.1 million bpd this year, compared with just 800,000 bpd last year. Oil imports from Iraq to Europe are 20% higher from July to November compared to the same period last year. Excess supply weighs on prices. Brent prices are down nearly $9 a barrel since this time last week. A European crude oil trader told Reuters that European refiners “appear to have overbought in November and December, possibly due to fears around the Urals.” In addition to those fears that caused panic buying, weekly strikes at French refiners and ramped-up refinery maintenance also curbed the call for crude oil in Europe as output slowed. Traders and refiners have increased their purchases this summer, anticipating shortages stemming from Europe’s ban on Russian crude imports. This ban is set to take effect on December 5. Until then, Europe will probably have no problems getting enough crude oil. After December 5, however, it could be a different story. By Julianne Geiger for Oilprice.com More top reads from Oilprice.com:
