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Glut and high inventories drive oil exports from US to Europe

More US oil is heading for Europe, amid a world glut and as inventories in the States hit all-time highs. Producers are taking advantage of the lifting of restrictions on the export of US crude and lo

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Glut and high inventories drive oil exports from US to Europe

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More US oil is heading for Europe, amid a world glut and as inventories in the States hit all-time highs. US crude oil stocks are now at a record 518 million barrels.

Producers are taking advantage of an end to long-time government restrictions on the export of US crude and lower shipping costs over the last few weeks.

Traders said there has been an increase in interest from buyers on this side of the Atlantic due to supply disruptions to usual European sources – particularly Nigerian and Kurdish oil.

The lower price of US crude compared with benchmark Brent also makes deals attractive leading to an increase in the number of tankers coming from the US Gulf Coast.

Most of the most recent round of offers for US deliveries right now are for April or May arrival.