US Daily Oil Summary: Texas Oil Exports to Surge in Final Days of 2023

Oil exports out of Texas are surging in the final weeks of 2023, according to Reuters, driven by record production levels and the need to avoid high year-end taxes on inventories.

• GC exports are expected to average 5m b/d in the final two weeks of 2023, Matt Smith, an analyst with ship tracking firm Kpler told Reuters. This compares to the 4m b/d across 2023.
• European gasoline arrivals in the US climbed to 195kbpd in the seven days to 14 December, up from 119kbpd in the week prior, according to bills of lading and ship-tracking data compiled by Bloomberg.
• US Gasoline demand is estimated at 8.5326mbpd in the week starting 10 December, up by 1.95% from the week prior and 1.3% above the four-week average according to GasBuddy via X.
• The US is seeking a regional coalition to secure the Red Sea shipping corridor, with a virtual summit set for Dec. 19. "This is an international problem, and it deserves an international response," US defence secretary Lloyd Austin said
• US Secretary of Defense Lloyd Austin III, speaking alongside Israeli Defence Minister Yoav Gallant, states that "Iran's support for Houthi attacks on commercial vessels must stop", and that "The US does not seek war and we urge Iran to take steps to de-escalate."
• USD: Despite the move higher for US yields, the USD index has maintained a narrow range on Monday, trading in very minor negative territory as we approach the APAC crossover.