BlockBeats News, April 9th, according to the Financial Times, as Asian customers rush to find alternatives to the disrupted Middle East oil supply due to the Iran war, U.S. crude oil exports are expected to hit a historic high in April.
The oil research firm Kpler estimates that U.S. export volume this month will soar by nearly one-third from March’s 3.9 million barrels per day to reach 5.2 million barrels per day. Demand from Asian customers will grow by 82% to reach 2.5 million barrels per day. Data shows that currently, 68 empty oil tankers are on their way to the United States, compared to 24 in the week before the outbreak of war on February 28th. Last year’s average was 27 tankers.
The surge in exports highlights the increasingly important role of the United States as a global “swing supplier,” but competition from Asia could also drive up domestic U.S. prices, deepening concerns about a new round of inflation triggered by the Iran war launched by Trump.
The Trump administration currently has no plans to ban oil exports. Analysts believe that if exports are banned, U.S. oil will not be able to be sold and will only stack up domestically; refineries, afraid of not being able to sell, will also reduce production. However, some warn that if the Middle East chaos caused by the war continues to push up fuel costs as the November midterm elections approach, the White House may change its mind.
