U.S. Crude Exports Poised for Record High Amid Global Supply Constraints

Deep News04-10 01:40

Crude oil exports from the U.S. Gulf Coast are projected to reach a record high of 5 million barrels per day in May, driven by substantial purchases from Asian buyers aiming to offset reduced supplies from the Middle East.

Based on current shipping schedules, daily crude exports in April have already climbed to approximately 4.9 million barrels, up from around 3.97 million barrels in March.

With an increasing number of Very Large Crude Carriers (VLCCs) loading along the Gulf Coast, analysts now anticipate further growth in crude exports for May. "U.S. crude exports appear set to maintain the strong momentum observed in April," stated Matt Smith, Head of Commodities Research at Kpler. He added that, with Asian demand remaining elevated, daily exports in May could surpass the 5 million barrel mark—exceeding the previous record of 4.5 million barrels.

As the summer demand peak approaches, U.S. refiners may face higher costs to retain crude domestically if export growth continues. Gasoline prices have already risen to their highest levels since 2022, exceeding $4 per gallon. Further increases could pose political risks for the Republican party ahead of the upcoming midterm elections.

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