Record US Petroleum Exports in April Driven by Geopolitical Tensions

According to the Energy Information Administration (EIA), US petroleum exports reached a record high in April, driven by a 15% increase in shipments to 13.6 million barrels per day (bpd). This surge was primarily fueled by crude exports, which averaged over 5.6 million bpd—a 21% increase from the previous record set in December 2023. Propane accounted for the second-largest share, exceeding 2 million bpd for the first time. Exports of finished petroleum products, including distillate fuel oil, motor gasoline, jet fuel, and petroleum coke, also hit their highest level since December 2024, despite relatively average motor gasoline exports.

Impact of Strait of Hormuz Disruptions on Global Demand and Prices

The record exports were driven by increased global demand for US products as the Strait of Hormuz remained under an effective chokehold due to the US-Iran war. This disruption caused spot prices for Brent crude to average over $117 per barrel in April, the highest monthly average since 2022, while West Texas Intermediate (WTI) averaged $100 per barrel. After a steady drop in June following a US-Iran memorandum of understanding that reopened the Strait, oil prices began rising again in recent days as the two nations traded strikes.

Market Reactions to Renewed Tensions and Ceasefire Comments

Following the strikes and comments from US President Donald Trump on Wednesday that a ceasefire was "all but done," oil traders showed signs of worry. Front-month Brent futures rose over 8% in early US trading to more than $80 per barrel, while WTI futures jumped 7.5% to nearly $76 per barrel.