"Replaced with U.S. Crude" Trump Aims for Energy Dominance, but American Consumers Cry Out Over High Prices [Global Report]

【Financial News New York City=Reporter Lee Byung-chul】 Paradoxically, the war with Iran has further strengthened the United States' position as an energy export powerhouse. As energy supply chains from the Middle East have been disrupted, countries in Europe and Asia have rushed to secure U.S. crude oil and liquefied natural gas (LNG). However, gasoline prices in the United States have also surged, leaving American consumers far from immune to the energy shock.
At the end of April, the U.S. Energy Information Administration (EIA) said U.S. crude oil and petroleum product exports averaged 12.9 million barrels per day, a record high. That is an unusually strong level even after the United States rose to become the world's largest oil producer through the shale revolution. The United States has become a net energy exporter in recent years, but analysts say the war is giving it even greater influence in the global energy market.
According to foreign media reports, U.S. exports of diesel, gasoline, crude oil, liquefied natural gas (LNG), jet fuel and ethane from January to April this year rose by an average of 33% from a year earlier. Over the same period, gasoline exports increased 27%, diesel exports rose 23%, LNG exports climbed 26%, and ethane exports used in petrochemical plants grew 30%. Jet fuel exports, which are usually smaller than gasoline or diesel shipments, also jumped sharply, rising 82% from a year earlier. The increase is being attributed to countries building up energy reserves as the prospect of a prolonged war grows.
In particular, global crude demand is pouring into the U.S. Gulf Coast. As of the end of April, more than 60 empty very large crude carriers (VLCCs) were heading toward the Gulf Coast. That is about three times the level seen before the war.
Markets expect U.S. crude exports to expand further over the next few months. Port and liquefaction facility utilization rates in Texas and Louisiana are also reportedly rising quickly.
Henning Gloystein, head of energy at Eurasia Group, told The Wall Street Journal (WSJ), "The concern is that the United States, especially the Trump administration, could use this as a political lever." He added, "There are concerns that the United States could exploit this supply dependence for its own interests in areas such as Climate Policy, the North Atlantic Treaty Organization (NATO), security and tariffs."
But fuel prices in the United States have also risen. International oil prices have jumped from around $70 per barrel for Brent Crude Oil before the war to about $115 this week. The increase reflects a roughly 64% rise in crude prices since the war with Iran began. The average U.S. gasoline price surged from about $2.91 per gallon in February to $4.10 in April, and recently climbed as high as $4.50. With logistics costs and jet fuel prices also rising, there are growing concerns that inflationary pressure in the United States could intensify again.