UK switched to net oil exporter in Q1 as refineries slashed production

London (Quantum Commodity Intelligence) - The UK was a net exporter of oil in the first quarter for the first time since the March 2020 lockdown, as demand tumbled amid the third national lockdown, despite refineries slashing production, data from the UK government shows Thursday.

Production from the UK's six remaining refineries hit a record low of 9.122 million mt in the quarter, lower than the 9.53 million mt in the second quarter of 2020 after the first national lockdown was introduced.

Stanlow refinery's owners, Essar Oil UK, was granted a time to pay deal to pay its tax to the UK government, and was forced to raise additional funds after the first quarter.  

Before the Covid-19 pandemic, the UK was last a net oil exporter in the second quarter of 2007.  

Imports of crude and natural gas liquids into the UK slumped 3.05 million mt, down almost 32%, from the fourth quarter to 6.56 million mt, while exports fell only 717,000 mt (7.5%), to 8.79 million mt, creating net exports of 2.33 million mt.

Imports of petroleum products were down 580,000 mt from tre fourth quarter to 5.69 million mt, while exports fell 736,000 mt to 3.87 million mt, creating net imports of 1.81 million mt.

Including process oil and bunkers, the UK switched from a net oil importer of 2.42 million mt in the fourth quarter to an exporter of 32,000 mt.

UK diesel production fell to 2.279 million mt, the lowest since records started and down 944,000 mt from the fourth quarter.

Gasoline production fell to 2.895 million mt, the lowest since the second quarter of 2020, and down 831,000 mt from the fourth quarter.

Jet fuel production also hit an all time low of 247,000 mt, down another 42,000 mt from the previous record low in the fourth quarter, and down 801,000 mt from the first quarter of 2020, which itself caught the impact of the first national lockdown.