Energy demand worldwide is directed towards US sources. Especially for products like oil, gasoline, and jet fuel that cannot be sourced from the Middle East, international buyers are turning to the US. This situation is causing America's energy stocks to rapidly decrease while also driving prices up. The US is exporting 14.2 million barrels of crude oil and products daily in an unprecedented manner; this amount corresponds to about one-seventh of global consumption.
For example, refined product exports to Australia reached 2.7 million barrels in March, and this figure increased by another 1.8 million barrels in April. Marathon Petroleum's Los Angeles refinery shipped diesel to Australia for the first time and also exported naphtha used in paints and inks to Asia. However, this high export volume has led to diesel prices rising up to $7.42 per gallon in states like California. US commercial crude oil stocks, excluding Strategic Petroleum Reserves, experienced a significant decline at the beginning of May.
It is noted that stocks at the large oil storage facility in Cushing, Oklahoma, could fall to levels that will complicate operations in the coming months. In such a case, US oil prices are expected to rise above global prices even further. This could reduce exports and lead to more crude oil being supplied to the domestic market. Experts evaluate the situation as a rapid depletion of energy stocks worldwide.
