World Turns to US Oil
US Oil Demand Surges Amid Hormuz Crisis
The Centenario deepwater oil refinery located in the Gulf of Mexico off the coast of Veracruz. Photo: Collected
The global energy market is facing significant volatility due to the ongoing crisis in the Strait of Hormuz. With oil supplies from the Middle East severely disrupted, buyers from Europe and Asia are turning toward the United States as an alternative source. As a result, the global demand for American crude oil is rising rapidly.
On Monday night, U.S. President Donald Trump claimed in a post on Truth Social that Iran has forced hundreds of ships to head toward oil-rich U.S. states such as Texas, Louisiana, and Alaska.
While it remains unclear exactly which types of ships the President was referring to, shipping and trading analysts confirmed that the closure of the Strait of Hormuz by Iran has led to a significant spike in demand for U.S. crude.
The Strait of Hormuz is a critical waterway for the transportation of Gulf oil. However, shipping in this route has been severely hampered since the U.S.-Israel strikes on Iran on February 28.
Unable to import oil through this maritime route from the Middle East, buyers have been forced to seek alternative suppliers.
According to data from maritime analytics firm Kpler, 71 Very Large Crude Carriers (VLCCs) are currently en route to the United States to load oil. This is a sharp increase compared to last year, when the daily average was just 27.
David Hayden, head of U.S. crude tanker pricing at Argus Media, stated that buyers in Europe and Asia are shifting toward Atlantic basin oil. They view the U.S. Gulf Coast as an accessible and sufficient solution to fill the supply gap.
This situation is expected to play a crucial role in boosting U.S. oil exports.
Data from maritime research firm Drewry shows that by April 10, U.S. oil exports reached 5.2 million barrels per day, marking a seven-month high. (Source: BBC)
