The United States has emerged as a dominant player in the oil market at a time when the world is experiencing one of the greatest energy crises in history. Driven by the shale revolution—powered by horizontal drilling and hydraulic fracturing technologies—the U.S. has transformed within years into the world's largest producer of oil and natural gas.
اضافة اعلان
Just a decade ago, Washington was importing more than 5 million barrels of oil per day (bpd) to cover its domestic needs. Today, the landscape has completely flipped. Thanks to the "shale revolution," the U.S. is pumping record volumes of crude oil and refined products into global markets, reaching approximately 5.9 million bpd over the last four weeks, compared to just 3.3 million bpd a year ago.
This massive increase of 2.6 million bpd has positioned America as a primary driver in offsetting global shortages resulting from supply disruptions and the closure of the Strait of Hormuz.
The story, however, extends beyond just production. U.S. President Donald Trump has deployed an extraordinary weapon: the Strategic Petroleum Reserve, commonly known as the SPR.
In March, Washington approved the release of 172 million barrels from the reserve as part of a coordinated international effort alongside major industrialized nations.
Initially, the oil flow was slow. However, by early May, the U.S. injected more than 1.23 million bpd from the strategic reserve, marking the highest weekly release rate in the history of this emergency stockpile.
These figures stunned market experts, who had previously estimated that the SPR's maximum drawdown capacity would not exceed 1 million bpd.
With this massive influx, pricing dynamics began to shift. A few weeks ago, West Texas Intermediate (WTI), the U.S. benchmark, was trading at a historic premium of $22.80 over North Sea Brent crude. Now, that premium has narrowed sharply to just $1.50.
In Europe, the actual landed cost of a barrel of U.S. oil has plunged from around $160 a month ago to just $106 today.
American oil continues to flood into European ports, with shipments from the U.S. strategic reserve already heading to the Netherlands, Italy, and Turkey.
Yet, a major question looms beneath the surface: how long can the United States sustain this momentum? The Strategic Petroleum Reserve is not a bottomless well. With aggressive drawdowns continuing, fears are mounting over depleting inventories and increased pressure on commercial stockpiles held by private companies.
Meanwhile, the White House is racing against time to reach an understanding with Iran. Estimates suggest that Washington may be able to maintain this pace until the end of May and possibly into June. After that, however, the markets are bound to grow anxious once again.
Source: Al-Arabiya.net
