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June 25th, 2019:

U.S. Oil Exports Rising Amid Middle Eastern Turmoil

American Energy Coalition - June 25th, 2019

"U.S. crude exports are surging, reflecting strife along the Strait of Hormuz that has given oil buyers second thoughts about the Persian Gulf", according to an article that ran in the Wall Street Journal today.

"The hostilities, including attacks on oil tankers passing through the important supply route, have lifted crude prices, sent tanker rates surging and opened a window for U.S. producers to sell more barrels abroad, taking market share from the Organization of the Petroleum Exporting Countries in the process."

"RBC Capital Markets forecasts that 21 very large crude carriers, or VLCCs, will be loaded this month along the U.S. Gulf Coast, well above the monthly average this year of 13 ships and the record of 17 reached in March..."

"...“If you don’t have to buy a barrel that comes through the Strait of Hormuz you’re certainly inclined to do so,” Mr. Tran said. “Security of supply is a huge topic.”..."; and reported by the Journal.

"...President Trump weighed in on Monday, calling for countries that are dependent on Middle Eastern oil to ensure safe passage of their own vessels. He specified China and Japan."

"“All of these countries should be protecting their own ships on what has always been...a dangerous journey,” the president wrote on Twitter on Monday morning. “We don’t even need to be there in that the U.S. has just become (by far) the largest producer of Energy anywhere in the world!”..."

"...The equivalent of 21% of the petroleum liquids consumed globally in 2018 passed through the strait, according to the U.S. Energy Information Administration. Increasingly, those ships are bound somewhere besides the U.S., which has been producing crude in record volume and gaining global market share as sanctions take barrels from Venezuela and Iran off the market...", says the WSJ story.

"“Oil traders will be hard pressed to push short bets in light of the possibility of meaningful Persian Gulf supply disruptions, unless they truly see tensions moderate significantly,” said Pearce Hammond, an analyst with Simmons Energy."

To read the complete Wall Street Journal article, go to: https://www.wsj.com/articles/u-s-oil-exports-rising-amid-middle-eastern-turmoil-11561404481

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