U.S. oil product exports have reached record highs as countries in Europe and Asia have sought alternatives to oil shipped through the Strait of Hormuz, which has been effectively closed because of the war with Iran.
The United States last week exported a record-high of oil products, a category that includes gasoline, jet fuel, and diesel, of nearly 8.2 million barrels a day, according to the Energy Information Administration. That is up about 23% from the same week a year ago.
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The closure of the Strait of Hormuz since late January has constrained oil product supply, particularly in Europe and Asia. Before the war, about 20% of the global oil supply passed through the strait. And around 80% of the oil that typically passes through the strait is bound for Asian markets, according to the International Energy Agency. Some of those Asian buyers have turned to the U.S. in recent weeks.
Port of Corpus Christi CEO Kent Britton told CNBC earlier this week that oil exports from the port have increased to about 2.5 million barrels per day since the war began, compared to 2.2 million barrels per day last year.
He added that ship traffic in Corpus Christi rose to more than 240 vessels in March, compared to the 200 the port normally sees the same month. “It’s a constant parade of tankers coming in and out,” he said.
One major U.S. shale oil producer, Diamondback Energy, said this week it would immediately increase production in light of the higher oil prices caused by the war. “We believe there is a legitimate supply-demand imbalance and that the associated price signal is the catalyst to begin to grow production,” CEO Kaes Van’t Hof wrote in a letter to shareholders, as Bloomberg reported.
Major producers Exxon Mobil and Chevron, however, have so far held off on boosting supply, despite entreaties from the Trump administration to drill more.
U.S. oil exports cannot fully replace the loss of Middle Eastern supply, leaving countries in Asia and Europe to conserve energy or turn to other energy sources, such as coal.
Meanwhile, U.S. consumers are facing elevated gasoline prices, and the public is beginning to blame President Donald Trump.
The average price of a gallon of gas nationwide hit $4.54 today, according to AAA, which is the highest since 2022, when Republicans were blaming President Joe Biden for high prices.
A new NPR/PBS News/Marist poll found about 63% of respondents blame Trump for the current increase in gas prices, which includes a third of Republicans.
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The president promised during his campaign to bring gas prices down to below $2. The administration has taken several actions to ease the high prices, including reducing regulations and adjusting sanctions. It has even pushed for oil giants to boost production to help lower energy costs.
