Speaking in an interview with CNBC, energy expert Tom Kloza, co-founder of the Oil Price Information Service, said that the record US crude oil exports could potentially unbalance the global oil markets.
“The exports are what we need to focus on through the next 30 days.”
While the US remains a net importer of oil, US shale operators—including ExxonMobil, which makes the high quality lubricants for Mobil UK stockists—have massively boosted the country’s overall oil production in recent years. Since last November, domestic exports have stayed consistently over a million bpd (barrels per day), filling the gap caused by lower production in Mexico and Venezuela. They reached a record-breaking 15 million barrels a week (2.175 million bpd) at the end of March.
Kloza said about this:
“We think that number is going to go up to probably 20 million or more [a week], get to maybe 2.5 million barrels a day. The United States is in essence going to be exporting more than the United Arab Emirates, Kuwait, Nigeria, those individual countries.”
While this may not have been a problem in other times, Kloza adds that this comes amid rising production from other countries. For example, Russia recently produced the most oil in 11 months, with hints that they may not be on board for further long-term production cuts. Increased production is also expected from Canada, Brazil, and Kazakhstan.
Despite this risk, Kloza anticipates an average price of $67 per barrel for oil for this year.