U.S. sells first condensate to Asia in at least 40 years - sources (updated)

GS Holdings

24/07/2014 05:19

* South Korea's GS Caltex, Japan's Cosmo Oil buy one cargo 
each - sources 
    * US oil exports to benefit energy-deficit allies in Asia - 
analyst 
 
 (Adds quotes, details) 
    By Florence Tan and Meeyoung Cho 
    SINGAPORE/SEOUL, July 24 (Reuters) - South Korea and Japan 
have purchased the first condensate, or ultra-light oil, from 
the United States since the easing of a 40-year-old ban on U.S. 
crude oil exports, sources familiar with the matter told Reuters 
on Thursday.  
    The U.S. has recently softened a total ban on crude oil 
exports in place since the Arab oil embargo of the 1970s, 
allowing energy companies to export a variety of ultra-light oil 
if it has been minimally refined. Refined products, such as 
gasoline and diesel, are not restricted. 
    The relaxation of the ban coincides with a resurgence in 
domestic shale oil and gas production as the U.S. seeks to 
assure energy importers in Europe and Asia of alternative 
sources of supply. Energy hungry nations, grappling with 
disruption fears as geopolitical crises in Eastern Europe and 
the Middle East deepen, would welcome steady shipments of oil 
and gas from a stable exporter such as the U.S.    
    "It means very little in itself, but because of current 
events it takes on a more political or symbolic importance," 
said Alex Yap, a senior oil analyst at FGE.  
    "If the U.S. wants its allies to be less dependent on the 
likes of Russia and Iran, it has to show some willingness to 
step up as a supplier instead of keeping the bounty from shale 
production within its own market."  
    South Korean oil refiner GS Caltex has bought a condensate 
cargo to be loaded in late July, three industry sources with 
knowledge of the matter said. They declined to be identified due 
to the sensitivity of the matter.  
    The cargo was marketed by Japanese trading house Mitsui & Co 
Ltd  8031.T , which had bought it from Enterprise Product 
Partners  EPD.N .  ID:nL2N0PE0AC  
    GS Caltex declined to comment.  
    South Korea's second-largest refiner with a capacity of 
775,000 barrels per day (bpd) is equally owned by the No.2 U.S. 
oil company Chevron Corp  CVX.N  and South Korea's GS Energy, a 
unit of GS Holdings  078930.KS . 
    Japanese refiner Cosmo Oil Co  5007.T  has also bought a 
cargo of U.S. condensate, an industry source familiar with the 
matter said earlier on Thursday. 
    The 300,000-barrel cargo will be loaded in August, and is 
set to arrive at Cosmo's 112,000 bpd Yokkaichi refinery in early 
October, the source said.  
    The cargo was priced at a few dollars a barrel discount to 
the similar Middle Eastern grades, the source added. 
 ID:nL4N0PZ046  
 
 (Reporting by Florence Tan in SINGAPORE, Meeyoung Cho in SEOUL 
and Osamu Tsukimori in TOKYO; Editing by Ryan Woo) 
 ((Florence.Tan@thomsonreuters.com)(+65 6870 3497)(Reuters 
Messaging: florence.tan.thomsonreuters.com@reuters.net)) 
 
Keywords: GS CALTEX CONDENSATE/USA