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U.S. Crude Exports Plunge as Buyers Seek Cheaper Alternatives
7 Aug
Summary
- U.S. crude oil exports fell to 3.1 million bpd in July, lowest since 2021
- Asian and European buyers found cheaper alternatives, undermining Trump's push
- Narrowing price spread between U.S. and European benchmarks reduced incentive
In July 2025, U.S. crude oil exports fell to around 3.1 million barrels per day (bpd), the lowest level since October 2021 when the COVID-19 pandemic ravaged global demand. This decline underscores how oil flows are dictated by price and shipping economics, even as the Trump administration has recently pushed countries to commit to more U.S. oil purchases as part of trade negotiations.
The drop in exports from the world's top producer came as Asian and European buyers found cheaper alternatives, undermining President Trump's efforts to increase foreign sales of U.S. energy supplies. The spread between European and U.S. benchmark crude futures narrowed, making it less economically attractive to ship barrels across the Atlantic. Exports to Asia fell to 862,000 bpd, the lowest since January 2019, while shipments to Europe declined 14% from June.
Analysts say markets are driven by economics, not politics, and companies will continue to purchase the cheapest or best feedstock for their needs. With inventories at the key Cushing, Oklahoma storage hub hovering just above operational levels, more domestic barrels were kept in the U.S. rather than exported.
