The surge in crude oil shipped from US shores is expected to shoot out the lights this month, with projected figures soaring to three times what they were last March when commodity markets were in a tailspin because of Russia’s invasion of Ukraine on February 25.
So far, US crude making its way to East Asia is 56% higher than it was in February.
As a result of the demand for American oil, the very large crude carrier (VLCC) sector, State-side that is, is experiencing record volumes but attendant capacity shortages.
Early indications are that the sharp curve upwards in crude shipped west to east will result in VLCC capacity unavailability for up to three months.
Analysis from several crude assessment sources point to a significant shift in crude shipped from Russia vs US and OPEC oil.
Crude out of the Middle East also, for that matter, has experienced plunging volumes.
Although China is maintaining a steadying supply line out of eastern Russia, increased sourcing of crude out of the US has not only led to record volumes of West Texas Intermediate oil, but has also changed the commodity’s global market dynamic.
