The records for U.S. oil company exports and deliveries continue to be broken as the global energy landscape undergoes a shift.
Oil markets and prices have long been under the control of the Organization of the Petroleum Exporting Countries (OPEC), a cartel comprising 13 major oil exporters, including Russia. A recent weakening of OPEC’s control is attributed to global disruptions over the past two years and a reassessment of international trade partners. This shift in trading dynamics has allowed U.S. suppliers to penetrate markets previously inaccessible to American oil.
Five U.S. Oil Records Set
U.S. oil exports have set five new monthly all-time records since the initiation of Western sanctions on Russia in the first quarter of 2022, enabling the U.S. to expand its market share globally by boosting production and supplying countries traditionally reliant on Russian or Venezuelan imports. An illustration of this shift is India, a significant consumer that has shifted from importing Russian oil to sourcing from the U.S. to meet its considerable oil demands.
Which U.S. Oil Stocks Are a Buy?
As U.S. production continues to gradually increase, every incremental barrel that’s being produced is likely to be exported. This means that the U.S. will continue to be a key player in the global oil market, providing a reliable source of crude for countries seeking to abide by sanctions with non-Russian sources of supply.
U.S. oil producers that may be building excess capacity include ExxonMobil (NYSE:XOM), Chevron (NYSE:CVX), ConocoPhillips (NYSE:COP), and Occidental Petroleum (NYSE:OXY) among the largest drillers. Utilizing the TipRanks Stock Comparison Tool, we can observe that all the stocks have received at least a Moderate Buy Analyst Consensus, with COP stock designated as a Strong Buy.
Key Takeaway
In summary, record oil production from the U.S. is occurring just as OPEC and its allies decided to curb their own supply, which has significant benefits for American producers as they are able to gain a bigger foothold selling oil overseas. The surge in U.S. oil production has led to a shift in the global market, with American barrels displacing sanctioned crude in countries like India. The future of U.S. oil production looks bright, with the country poised to continue its rise as a dominant force in the global oil market.
