Last week, the U.S. averaged 2.3 million barrels per day in crude oil exports, the highest average for any week on record. The surge in exports is being driven by several factors. The most obvious is the rapid growth in U.S. shale production, with shale drillers adding new supply at a blistering rate. Record production is leading to record exports. (Click to enlarge) But also, all of the oil coming out of the Permian basin is light and sweet, and refiners on the Gulf Coast are not equipped to handle ever-increasing volumes of this type of oil. Many of the refiners prefer medium and heavier grades. The result is a glut of light sweet oil, and exporting those volumes are a logical move. Another reason for the upward trend in exports is the renewed price differential between Brent and WTI. While the oil market is global, the two benchmarks […]