Europe has surpassed Asia to become the top consumer of American oil for the first time in six years. The last time Asia’s volumes fell behind Europe for the same five-month period was in 2016, when the US reversed its crude export ban, data show. This shift in oil flows underscores how significantly Russia’s invasion of Ukraine has redirected energy supplies. In an effort to cut off funding for Putin’s war, the US and other nations have imposed sanctions on Russian oil.
As Europe tries to lessen its dependence on Russian energy and switches to sweeter crudes to replace Russian oil, its likely these trade-flow patterns persist, Christopher Haines, global crude analyst for Energy Aspects, said by email. US crude production is growing but not fast enough to accommodate the needs of both Asia and Europe. Additionally, the Middle East appears to be constrained in how much more it can send to Europe.