US Edges Closer to Becoming Net Crude Exporter for First Time Since World War Two

The US is on the brink of becoming a net crude exporter for the first time since World War Two, with exports reaching a seven-month high of 5.2 million barrels per day (bpd) last week. According to data from the US government, net imports of crude oil narrowed to 66,000 bpd, the lowest on record.

The surge in exports is attributed to the disruption caused by the Iran war, which has led to a shortage of Middle East supplies. Refiners in Asia and Europe are scrambling to replace these lost supplies, boosting demand for US oil.

However, analysts warn that the US is approaching its export capacity limits, with some predicting that exports may touch 5.2 million bpd for April. With limited pipeline capacity and vessel availability, every incremental barrel exported costs more in freight and logistics than the last one, according to Dubai-based oil trader Bekzod Zukhritdinov.

Despite these challenges, US crude exports are expected to continue rising, with some analysts predicting that they may even surpass 6 million bpd soon. The price of physical crude oil cargoes for prompt delivery to Europe hit a record high near $150 a barrel last month, further increasing demand for US oil.