Global Supply Shocks Drive Record US Crude Exports
US crude oil exports surged to an all-time high of 5.6 million barrels per day (mmbbl/d) in May, as Asian and European refiners increased purchases to offset supply disruptions triggered by the war between the US and Israel against Iran. Ship-tracking data from analytics firm Kpler showed exports surpassing the previous record of 5.2 mmbbl/d set in April, according to Reuters.
The conflict has effectively closed the Strait of Hormuz, a key waterway through which nearly one-fifth of global oil and gas supplies normally transit, causing the largest disruption to energy flows in decades. Refiners worldwide scrambled for alternatives, with US crude gaining traction due to its relative price advantage. Benchmark West Texas Intermediate (WTI) traded at a steep discount to Brent, the global benchmark, further boosting demand.
Exports to Asia reached 2.45 mmbbl/d , retaining its position as the top buyer for a second consecutive month, while Europe followed closely at 2.4 mmbbl/d, both setting record highs. Demand from Japan, which traditionally sources most of its crude from the Middle East, accounted for the lion’s share of Asian imports at 808,000 barrels per day (b/d), a 32% monthly increase and a new record.
US crude bound for the Mediterranean and Black Sea also hit a record in May, with Bulgaria, Croatia, Turkey and Greece emerging as rare transatlantic buyers. Italy’s imports climbed to a record 335,000 b/d, driving the uptick in European demand.
At least 283,000 b/d, or about 5% of total US exports in May, came from the US Strategic Petroleum Reserve (SPR). The barrels, part of the ongoing release of 172 million barrels (mmbbl) from the emergency stockpile to combat spiking prices, were shipped to both European and Asian refiners.
The surge underscores the US’s growing role as a critical supplier in times of geopolitical crisis, with its export capacity helping stabilize markets amid Middle Eastern supply disruptions.
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