US to exchange crude with Mexico as exports climb to 1 million b/d: Citi
The US is expected to export more than 1 million barrels/day of crude oil and condensates by early next year, including roughly 200,000 b/d in light-for-heavy crude exchanges with Mexico, analysts with Citi said in a new report.
According to Citi's estimates, US crude oil exports to Eastern Canada will grow 500,000 b/d, exports from Alaska will climb to 100,000 b/d, exports of processed condensate will hit 200,000 b/d and exports to Mexico will grow to 200,000 b/d from zero.
Those Mexican exports will likely be done, at least initially, under exchanges in which the Commerce Department allows a barrel-for-barrel trade of light crude exports for heavy crude imports, analysts said.
"In the case of Mexico, there is a good fit between the heavy crude exported from Mexico to the US versus th
Nov 08, 2014