US Crude Exports Soar to Record High Amid Middle East Crisis

US crude oil exports hit an all-time high in May, reaching 5.6 million barrels per day as global demand skyrocketed due to supply disruptions in the Middle East. The ongoing war between the US and Israel and Iran led to a significant shortage of oil supplies from the region, prompting Asian and European refiners to seek alternative sources.

According to data and analytics firm Kpler, exports to Asia reached 2.45 million barrels per day, with Japan taking the lion's share at 808,000 barrels per day, up 32% from April. Europe also set a record high in May, importing 2.4 million barrels per day.

Italy's record imports of 335,000 barrels drove the uptick in European demand. Energy experts attribute the surge in US exports to favorable shipping economics and lower transatlantic freight rates.

Kpler's Director of Commodity Research Matt Smith noted that Asia's buying was mainly driven by necessity while European buying was mainly due to favorable shipping economics and lower transatlantic freight rates.