US Crude Exports Hit Record High Amid Iran War, Soar Fivefold in a Week

[Financial News]

As the war involving the Islamic Republic of Iran has disrupted traffic through the Strait of Hormuz, crude oil exports from the United States of America (US) have benefited. US oil exports have reached an all-time high.
The Financial Times (FT), citing US government data released on the 15th (local time), reported that US crude exports averaged 5.2 million barrels per day last week, the highest level on record. In the previous week, exports were just over 1 million barrels per day.
The US also exported about 7.5 million barrels of refined petroleum products, including gasoline and fuel oil. Global supplies of refined fuels, in addition to crude oil, have been disrupted, which has further stimulated US exports of refined products.
As a result, US oil inventories, which were expected to rise sharply during the seasonal lull, instead fell significantly.
With oil exports at record levels, inflationary pressure is expected to intensify.
President Donald Trump has repeatedly stressed that if buyers cannot purchase Middle Eastern oil, they should buy US oil instead.
Edward Hayden-Briffett, an analyst at The Officials under Onyx Capital Group, said, "Asia and Europe are looking for alternatives to Middle Eastern supply," adding, "US barrels are a clear substitute."
He predicted, "Because many tankers are booked to load crude in the Gulf of Mexico over the coming weeks, oil exports are likely to remain elevated for some time."
Analysts, however, see a possibility that oil exports could soon be curtailed. They warn that the export boom, combined with supply disruptions of Middle Eastern crude due to problems in the Strait of Hormuz, could push US gasoline and diesel prices even higher and pressure President Trump to decide to halt exports.
According to the American Automobile Association (AAA), the average gasoline price has soared from about $1 per gallon (about 3.78 liters) on February 28, when the US began airstrikes against the Islamic Republic of Iran, to $4.10. The diesel price stands at $5.63 per gallon, nearing the all-time high of $5.81.
On the 2024 presidential campaign trail, Trump vowed that if he returned to office, he would cut energy costs for consumers in half within his first year. However, electricity prices and home heating oil costs have risen even faster than the overall US inflation rate.
Rapidian Energy Group has projected that if international crude prices continue to climb and surge to $150 per barrel, Washington may move to impose controls on exports of US crude or refined products.
Rapidian noted that the Trump administration has repeatedly assured the industry it will not attempt export controls, but warned that these promises could become meaningless if oil prices jump again following the collapse of ceasefire talks on the 11th.


dympna@fnnews.com Song Kyung-jae Reporter