U.S. Oil Exports Drop to Eight-Month Low in July

U.S. oil exports fell to 3.66 million barrels per day in July, marking the lowest level in eight months. This decline follows a May peak of 5.7 million barrels per day, a period when conflict in the Middle East had severely restricted regional supplies and heightened demand for American crude.

The Federal government of the United States and Iran signed a memorandum of understanding in June that briefly reopened the Strait of Hormuz. This agreement allowed Middle Eastern crude to flood global markets, which reduced the demand for U.S. exports. Consequently, shipments to Europe and Asia declined, specifically affecting deliveries to Japan and South Korea.

Domestic factors also contributed to the drop. The Energy Information Administration reported that U.S. refinery utilization reached 96.3%, the highest rate since 2018. This high utilization meant more crude was retained for domestic processing rather than exported. Analysts expect exports to recover to over 4 million barrels per day in August and September as the price spread between West Texas Intermediate and Brent crude widens.