U.S. imports of Kazakh crude tumble after Russia's Ukraine invasion

Novorossiysk Commercial Sea Port PAO

05/10/2022 07:00

By Arathy Somasekhar
       HOUSTON, Oct 5 (Reuters) - U.S. imports of Kazakhstan
crude have dropped two-thirds since February, a Reuters analysis
of U.S. Customs data showed, a decline spurred by pipeline and
terminal outages and worries about the status of exports from a
Russian port. 
    The decline highlights the changing oil flows since Russia's
invasion of Ukraine. U.S. buyers imported about 4.3 million
barrels of Kazakhstan's CPC Blend, down from 13.2 million in the
same period a year ago. Refiners increased purchases of Middle
East crude, particularly Basra Medium, as CPC fell. 
    Traders initially this year shunned CPC oil out of fear that
loadings from Russia's Novorossiysk port might be barred. They
were not, but terminal equipment repairs, oilfield and pipeline
maintenances have cut shipments and volumes. 
    Chevron, which owns a 50% stake in Kazakh oil producer
Tengizchevroil, PBF Energy's  PBF.N  Delaware City refinery and
Valero have purchased CPC crude since the Ukraine crisis. PBF
has not, however, received any cargoes since May. 
    Chevron and PBF did not immediately reply to requests for
comment.      
    Chios, a Greek-flagged vessel chartered by Chevron, loaded
CPC crude at Novorossiysk and was signaling discharge this month
at El Segundo, California, according to Refinitiv Eikon vessel
tracking data. Chevron operates a refinery there. 
    Aristofanis was the latest vessel to discharge CPC crude in
the United States, according to U.S. customs data. The Marshall
Islands-flagged tanker was chartered by Valero Energy  VLO.N 
and discharged crude at Long Beach and Benicia in California. 
    Aigeorgis, another Valero-chartered vessel that according to
Refinitiv Eikon is carrying CPC Blend crude, also signaled
Benicia as its destination. It has been anchored off the
southern California coast for about three weeks. 
    Valero and CPC Pipeline Consortium did not reply to a
request for comment. 
    U.S. authorities in June allowed an oil tanker traveling
from Russia to New Orleans to unload after checking whether the
cargo was Russian. A source familiar with the matter had said
the shipment was of Kazakh oil products. 
 (Reporting by Arathy Somasekhar in Houston; Editing by Josie
Kao)
 ((arathy.s@thomsonreuters.com; +1 832 208 3362; Twitter:
@ArathySom;))