US Oil Exports Plummet Amid Brief Iranian Peace Deal

US oil exports fell to their lowest level in eight months in July, according to ship tracking data. The decline comes after a short-lived peace deal between the US and Iran briefly flooded markets with Middle Eastern oil and reduced demand for American crude.

The US had become the world's top oil exporter earlier this year due to supply disruptions from Iran. However, exports have been steadily declining since May, when they reached a monthly record of 5.7 million barrels per day.

During the peace deal period in June, tanker traffic through the Strait of Hormuz increased, adding supply to global markets. This was reflected in the share of US oil exports to Asia, which fell to about 40% in July from 52% in June.

Cargoes to Japan and South Korea, top buyers in June and July, decreased by 67% and 39%, respectively. Shipments to Europe also shrank to about 1.7 million bpd in July from as much as 2.5 million bpd in May.

High refinery utilization in the US, with a four-week average of 96.3%, kept barrels away from export markets. However, analysts predict that exports will rise in August and September due to a widening discount between West Texas Intermediate crude and Brent.