US crude oil exports hit record high in 2023

US crude oil exports established a record in 2023, averaging 4.1 million barrels per day (b/d), 13 per cent (482,000 b/d) more than the previous annual record set in 2022, US Energy Information Administration reports. 

Except for 2021, US crude oil exports have increased every year since 2015, when the US ban on most crude oil exports was lifted.

Growth in crude oil production in the United States has supported increases in US crude oil exports. In 2023, crude oil production reached a record-high 12.9 million b/d in the United States, a 9 per cent (1.0 million b/d) increase from 2022. Many US refineries are optimized to run heavy, sour crude oils, but most of the crude oil produced in the United States is light, sweet crude oil, creating export incentives for market participants.

The top regional destinations for US crude oil exports since 2018 have been Europe as well as Asia and Oceania. Europe became the top export destination in 2023 following the effects of Russia’s full-scale invasion of Ukraine and the inclusion of West Texas Intermediate (WTI) crude oil in Dated Brent.

In 2022, US crude oil exports to Europe increased significantly following Russia’s full-scale invasion of Ukraine and subsequent EU sanctions banning imports of seaborne crude oil from Russia (adopted June 3, effective December 5). These effects of the sanctions contributed to continued growth in US exports to Europe in 2023. In 2023, US crude oil exports to Europe averaged 1.8 million b/d, slightly more than US exports to Asia and Oceania of 1.7 million b/d.

Another factor affecting the volume of US crude oil exports to Europe is the inclusion of WTI crude oil in Dated Brent, a European crude oil benchmark. Prior to May 2023, the price of Dated Brent was determined based on a basket of different European crude oils. Starting in May 2023 (for physical delivery in June), WTI cargoes delivered to Rotterdam were included, likely attracting additional volumes to Europe.

The Netherlands received more US crude oil exports than any other country in 2023, averaging 652,000 b/d.

China received the second-most US crude oil in 2023, averaging 452,000 b/d, more than double 2022 volumes.

In contrast to increasing US crude oil exports to the Netherlands and China, US crude oil exports to India fell 47 per cent (146,000 b/d). India increased imports from Russia following sanctions that limited the price Russia could charge for crude oil exported using the services of sanctioning countries.