US Exports of Oil Products Reach Record on Diesel Demand

An oil tanker at the Port of Corpus Christi in Texas. (Eddie Seal/Bloomberg)

U.S. exports of oil products rose to a record high last week as the nation continues to help make up for disruptions to fuel supplies sparked by the Iran war. 

The shipments rose to 8.2 million barrels a day, according to data published May 6 from the U.S. Energy Information Administration.

The U.S. has become a lifeline for global consumers as the near-closure of the Strait of Hormuz throttles Middle Eastern supplies of oil and fuels. Crude shipments hit a record in data reported last week, and continuing robust demand for fuels like diesel, jet and gasoline drove the fresh record for product exports.

“It seems export capacity is skewed toward products versus oil this week,” said Ryan McKay, a TD Securities commodity strategist. “It makes sense given product-market tightness is more acute than crude globally.”

The product shipments were driven by a record for exports of distillate fuels like diesel, with 1.9 million barrels a day departing from the U.S. in the week ended May 1. The totals narrowly exceeded recent highs set in August 2024, and eclipse any total from the early years of Russia’s invasion of Ukraine.

Exports of jet fuel also rose last week to 427,000 barrels a day, just below a record high set the week of April 3.

So-called middle distillates such as diesel and jet fuel have come under particular pressure during the war, as refiners in Asia and Europe have been cut off from crude supplies. Meanwhile, refiners west of the strait, which produce significant quantities of the products, have been largely unable to send cargoes.

The prices of diesel and jet fuel have surged in the U.S and around the world since the start of the war. Retail diesel prices have soared to about $5.67 a gallon on average in the U.S., according. to data from the American Automobile Association. And on the Gulf Coast, jet fuel was priced at $3.77 a gallon as of May 5 — a 57% increase from the start of the war.

Diesel is often considered the lifeblood of the economy, helping to power trucks, tractors and other machinery. And higher jet fuel prices mean rising flight costs. 

While the soaring U.S. exports are a boon to refiners, they present a political risk for the Trump administration as American consumers face rising energy costs and eroding domestic supplies. U.S. distillate stockpiles last week stood at their lowest levels since 2005.

Amid the war, U.S. refiners have sent diesel and gasoline to atypical destinations like Australia that usually wouldn’t rely on American supplies.