As countries globally continue to work to replace Russian supplies in the wake of the Ukraine crisis, the U.S. exported the most oil and petroleum products in history last week, according to data from the U.S. Energy Information Administration (EIA).
With the country’s exports outweighing its imports by the most ever in government data going back to 1990, the United States crude and petroleum exports increased to reach an all-time weekly high of 10.6 million bpd during the week ending April 15.
The U.S. has never been heavily reliant on Russia for its energy imports, mostly importing less than 3% of its need from Russia, unlike its EU counterparts. Thus, the United States currently is playing a significant part in helping fill the gap left by most EU countries self-sanctioning of Russia’s energy.
After Russia’s invasion of Ukraine led buyers to turn to it for everything from crude to natural gas to motor fuel, the U.S. can thank that notable milestone after achieving the status of ‘the energy supplier of last resort.
Following multiple governments including the UK, U.S. and Canada imposed heavy sanctions on oil imports, the bulk of Western trading firms and companies have been pulling energy investments.
Matt Smith, an oil analyst at market intelligence firm Kpler, has told Bloomberg:
“Strong exports have been driven by a pull to Europe and we should expect strength in the weeks ahead.”
Europe’s, as well as Latin America’s appetite for U.S. diesel, has remained elevated. The rise in exports volumes across the board is also driving prices up in an already supply-constrained market and helping drain U.S. inventories. U.S. crude stocks slumped by more than 8 million barrels last week, the biggest margin since January of 2021.
With relatively weak prices for U.S. crude likely to draw in more buyers, traders expect exports to remain strong heading into the summer, whereas demand for U.S. oil remains massive.