The Ingleside Pipeline, a 24-mile, 24-inch oil pipeline, has a capacity of 600,000 bbl/d with up to 380,000 bbl/d supplied by the existing Harvest Eagle Ford pipeline systems.
A trade source said that close to 30 cargoes were likely canceled from Cheniere Energy's plants, Sabine Pass in Louisiana and Corpus Christi in Texas.
API said U.S. investors have faced difficulties getting permits in Mexico for fuel stations, storage facilities, imported fuel and terminals.
The combination of higher U.S. prices, coronavirus demand destruction and record stockpiles in Europe has already prompted buyers to cancel dozens of U.S. LNG export cargoes for delivery this summer.
If the increase is a one-off, it won’t affect a market that is quickly rebalancing.
Commodities merchant Trafigura and Occidental Petroleum are among companies looking to book vessels to ship crude from the U.S. Gulf Coast to Asia, one shipbroker said.
Shipments are the first from the US since March 2019.
Even with very high day rates, the oil market contango means that floating storage makes economic sense.