Back in June, we reported that overall US Nat Gas exports had exploded thanks to soaring LNG flows to Europe which has grown increasingly desperate for any “friendly” nat gas now that Russia has almost shut off all pipelines toward Europe, in the process pushing US nattie prices sharply higher – if nowhere near where they are in Europe currently. And while these exports fizzled after the Freeport LNG explosion in June, it was clear that nat gas prices (and to a lesser extent, inventory) in the US would be a factor not only of domestic demand, but increasingly also of European imports from the US.
The same of course, can be said for oil, which is seeing growing demand in Europe – which finds itself increasingly locked out of Russian oil output, which is expected to shrink even more once a Russian oil ban is imposed at the end of the year – as part of gas-to-oil switching which is becoming increasingly prevalent in Europe, and is why US crude sales overseas are also set to hit fresh records through next year as American oil increasingly takes market share in Europe.
Earlier this month, weekly government figures showed an unprecedented 5 million b/d of US crude being exported. Shipments are poised to average over 4 million b/d over the next few months and into next year, according to the most optimistic in the oil industry.