Ship-tracking estimates published on Monday indicate that U.S. crude exports climbed to a record 5.6 million barrels per day in May, driven by elevated demand from refiners in Asia and Europe after the conflict involving the U.S., Israel and Iran disrupted Middle Eastern supply.
Analysts described the confrontation as producing the largest-ever disruption to the global energy market, with refiners worldwide searching for non-Middle Eastern crude. Around a fifth of global oil and gas supplies transit the Strait of Hormuz, a strategic chokepoint that effectively closed when the war began at the end of February, contributing to the scramble for alternative sources.
Last month’s export tally surpassed April’s previous record of 5.2 million barrels per day, according to data and analytics firm Kpler. The surge in U.S. shipments coincided with a pronounced price divergence between benchmark U.S. West Texas Intermediate and Brent, the global benchmark. In March, WTI traded at a discount to Brent futures as large as $20.69 per barrel - its widest gap in 13 years - as Brent gains outpaced those in WTI amid the supply shock originating in the Middle East.
May exports to Europe and Asia each reached record levels. Asia remained the largest recipient for a second consecutive month, taking 2.45 million barrels per day of U.S. crude exports. Europe imported 2.4 million barrels per day.
Japan accounted for the largest share of Asian imports of U.S. grades in May, taking 808,000 barrels per day. That level represented a 32% increase from the prior month and set a new record for Japanese imports of U.S. crude.
Market dynamics and context
The rapid increase in U.S. shipments reflects refiners’ need to replace volumes traditionally sourced from the Middle East following the onset of the conflict at the end of February. The narrowing of supply options through the Strait of Hormuz, which carries roughly 20% of global oil and gas flows, intensified competition for non-Middle Eastern barrels and reshaped trade patterns in May.
Price behavior earlier in the quarter - with WTI at times trading more than $20 below Brent - illustrates how the shock to Middle Eastern supply pushed Brent higher relative to U.S. crude, incentivizing exports from the United States to markets able to take additional shipments.
Implications for refiners and trade flows
- Refiners in Asia and Europe increased purchases of U.S. crude to offset the reduction in Middle Eastern supply.
- Japan notably raised its intake of U.S. grades, posting a month-on-month rise of 32% in May.
- Global shipping and trade patterns have shifted as importers and refiners seek alternatives to flows through the Strait of Hormuz.
The available ship-tracking estimates and Kpler’s data provide a snapshot of how quickly trade flows adjusted in May in response to the supply disruption. Beyond the raw export volumes, the data highlight the price signals and logistical pressures that accompanied the re-routing of crude cargoes away from the Middle East.