The Port Arthur refinery at 630K barrels/day is the largest in the U.S. and
So we know where some of the goo is headed.
But even with cancellations from non-Saudi customers there is an immense amount of oil on its way.
First up, Bloomberg via gCaptain, April 29:
A fleet of supertankers carrying Saudi oil will add to the growing congestion at U.S. ports in coming weeks at the same time producers are shutting in output as they run out of space to store unwanted supplies.....MORE
A total of 43 million barrels of Saudi oil is set to arrive on the U.S. Gulf and West coasts by May 24, according to Rystad Energy. The flotilla — comprising 28 tankers, including 14 very large crude carriers, or VLCCs — will join a queue of 76 tankers waiting to unload in U.S. ports as the greatest oil glut in history plays out.
Dozens of tankers are lined up off the two coasts with demand for motor and jet fuel destroyed by the Covid-19 pandemic. There are 34 tankers already waiting in line to offload about 25 million barrels on the West Coast, and 31 tankers lined up off the U.S. Gulf Coast.
“The congestion at U.S. ports has reached new highs,” Paola Rodriguez-Masiu, Rystad Energy’s senior oil markets analyst, said in a statement. “We find it unlikely that all tankers will be able to unload upon arrival.”...
And from Reuters via gCaptain, April 29:
Saudi Crude Buyers Cancel at Least 7 Supertankers After Freight Hike – Sources
U.S. buyers of Saudi Arabian crude oil cancelled at least seven April-loading tankers after a jump in freight costs, two industry sources said, likely to result in lower-than-expected shipments from the world’s top exporter.....MORE
The move shows how some buyers are not rushing to take extra oil despite a slide in prices this month to below $16 a barrel, the lowest this century, as demand has collapsed following government measures to contain the spread of the coronavirus.
In March, Saudi Arabia had cut its official selling prices for April crude and vowed to boost exports after a supply cut deal by the Organization of the Petroleum Exporting Countries and rivals like Russia collapsed.
But tanker rates soared and Saudi Arabia told buyers it would cut compensation payments for freight costs because of extraordinary conditions in the freight market.
Freight costs jumped globally because more ships were needed to deliver oil after Saudi Arabia and other Middle East producers ramped up output after the talks to extend the OPEC-led production cut deal broke down at the start of March.
This killed the economics of importing the extra barrels, one source said.....
June WTI futures up $1.93 (12.82%) at $16.99.
It was a lifetime ago (okay, eight years) when we first started babbling about Motiva:
Saudis Sending Seven Tankers to Begin Stockpiling Feedstock for Soon to Be Largest Refinery in the U.S., Motiva (RDS)
Back then it was a 50/50 j.v. with Shell.
