U.S. Crude Oil Exports to Asia Hit Seven-Year Low

U.S. crude oil exports to Asia are projected to reach a seven-year low as the war in Iran disrupts global shipping lanes. The conflict has caused the cost to lease oil tankers for Pacific journeys to surge to a record near $80 million, which has significantly suppressed demand for American crude.

Asian refinery orders for U.S. crude for November delivery dropped approximately 50% sequentially this month. Current orders have fallen to between 24 million and 26 million barrels. If this downward trend continues through the end of October, export volumes will hit their lowest point in seven years.