US crude oil exports hit a record high last week, as Asia and Europe scrambled to secure alternative supplies following disruptions to Middle Eastern oil caused by the Iran conflict.
The Financial Times reported on the 15th (local time), citing US government data, that US crude exports totaled 5.2 million barrels per day last week. This represents an increase of more than 1 million barrels from the previous week, marking an all-time high, according to FT's analysis. Exports of refined products including gasoline and fuel oil also reached approximately 7.5 million barrels per day during the same period.
As exports rose and imports declined, crude inventories fell—contrary to market expectations of an inventory build. Analysts say this has provided fresh momentum to international oil prices.
The trend suggests that global crude supply conditions are deteriorating. European and Asian importers are turning to US crude to fill the supply gap from the Middle East.
Concerns are mounting that increased overseas demand could push up domestic energy prices in the US. If competition for US crude intensifies, it could drive up gasoline and diesel prices domestically, potentially fueling inflationary pressures.
According to the American Automobile Association (AAA), the average US gasoline price has risen by approximately $1 per gallon since the war began on February 28, reaching $4.10. Diesel prices have also climbed to $5.63, approaching the all-time high of $5.81.
"With Asia and Europe looking to replace Middle Eastern supply, US crude has become a natural alternative," said Edward Hayden-Briffett, an analyst at The Officials under energy research firm Onyx Capital Group. "The export strength is likely to continue for some time."
Some analysts suggest the US government may consider export restrictions. Energy consulting firm Rapidan Energy Group projected that if oil prices approach $150 per barrel, the US could consider measures to restrict exports of crude or refined products. "The administration has maintained that it is not considering export restrictions, but the situation could change if ceasefire negotiations break down and prices surge," the firm noted.
