The US, country that once refused to export its fuel, has now climbed to the top spot in the global oil export rankings, overtaking crude heavyweights such as Saudi Arabia and Russia. As the world continues to feel the ripples of the ongoing Middle East crisis, US exports of crude and fuel reached around 10.5 million barrels per day (bpd) in May, driven by strong domestic production and releases from strategic reserves.The performance marked the third straight month that the United States held the position of the world’s largest oil exporter. By comparison, Russian exports stood at 7 million bpd in May, according to Reuters calculations, while Saudi Arabia exported 5.9 million bpd, Vortexa data showed.The latest rankings highlight how dramatically the global energy order has shifted.Just a year earlier, Saudi Arabia had exported around 8.1 million bpd, ahead of the United States at 6.6 million bpd, while Russia’s exports were estimated at roughly 5.8 million bpd.The shift came after supplies through the Strait of Hormuz, a key Middle Eastern oil passage, were disrupted for more than 100 days. The conflict began on February 28, when the US and Israel launched joint strikes on Iran. Following the strikes, Iran tightened its grip on the crucial passage, putting energy supplies across the globe under pressure.Also read | Oil prices slip below $90: Brent, WTI tumble after Trump announces ‘ending war with Iran’At the same time, Russian shipments have been hit by Ukrainian drone attacks and US sanctions imposed following Moscow’s invasion of Ukraine.
Oil — Washington’s new tool
For the United States, the milestone represents a striking reversal from its past dependence on imported oil. Decades ago, the country relied heavily on Middle Eastern supplies and was among those affected by the 1973 oil embargo imposed by some OPEC members in response to US support for Israel.The transformation gathered pace after 2010 as output from US shale formations surged. The country first became the world’s largest natural gas producer before emerging as the top oil producer.“Washington has a new tool they didn’t realize they had before the Iran war — energy exports,” said Michelle Brouhard, head of policy at ship tracking firm Kpler.The role of the United States in global oil markets could also challenge the influence historically exercised by the Organization of Petroleum Exporting Countries and its allies.OPEC’s position was further tested in May when the United Arab Emirates, one of its biggest members, withdrew from the group after nearly 60 years.Brouhard said the United States now holds significant leverage because of the increasing dependence of some countries on American energy supplies.“You can see now the leverage the United States has over some of these countries because they are dependent on the US for their oil or gas,” Brouhard told Reuters, adding that the US was the largest provider of crude to Europe and the second-largest provider of distillates.The expansion of US production has coincided with rising global demand. Worldwide oil consumption increased from 87 million bpd in 2010 to 104 million bpd last year, with much of that additional demand being met by the US oil boom.Another turning point came in 2015 when the United States lifted a four-decade ban on crude exports that had been introduced after the Arab oil embargo. Ten years later, the country has emerged as the world’s biggest oil exporter, countering expectations that its production growth would prove short-lived.Follow US-Iran conflict live updates hereThe structure of the US oil industry also sets it apart from Saudi Arabia and Russia. While governments in those countries directly influence production and export targets, American output is largely determined by private companies responding to market conditions.
What about other crude dealers
Russia has voiced concerns over the changing landscape. Igor Sechin, chief executive of Rosneft and a close ally of President Vladimir Putin, said this month that US energy companies had been the primary beneficiaries of the closure of the Strait of Hormuz.However, even before the US-Iran war, American producers had been outpacing their Saudi and Russian counterparts in terms of production growth.Since 2,000, US crude and liquids output has nearly tripled, reaching around 22 million bpd. Over the same period, Saudi Arabia’s output has largely remained within a range of 10 million to 12 million bpd, depending on OPEC quotas.Russia’s oil and liquids production rose from 6 million bpd in 2000 to 10 million bpd by 2010 and expanded by another 2 million bpd during the following decade. Since 2020, however, production has largely stagnated and slipped to below 10 million bpd.European buyers have increasingly turned to the United States since the Ukraine war began in 2022. Europe accounted for around 47% of US oil exports so far this year, compared with 37% in 2021.Asian nations are also sourcing more crude from the United States. The region represented about 46% of US oil exports in May, up from roughly 37% last year, signalling a broader shift in global trade flows.
