US Oil Exports Surge, Drawing Crude Away from Storage Hub

U.S. crude is attractive to world buyers because it is trading at a steep discount of nearly $7 under the global benchmark Brent.

Stephanie Kelly, Arathy Somasekhar and Nia Williams, Reuters

U.S. oil exports have climbed following Russia's invasion of Ukraine, and barrels of domestic oil that would typically go to the Cushing, Oklahoma, storage hub are instead being exported via the Gulf Coast, traders said.

The invasion threw the oil market into disarray, as companies stopped buying Russian oil and prices skyrocketed. Worldwide buyers are looking to source crude wherever they can, and exports have risen in recent weeks from the U.S., the world’s largest crude producer.

Cushing, Oklahoma, known colloquially as the crossroads of the oil industry, is where holders of WTI futures contracts in the U.S. take delivery. Its vast storage capacity means it is still considered a guidepost for U.S. inventories even as barrels have shifted to the Gulf after Washington lifted the U.S. ban on exports in 2015.

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