One major beneficiary of sanctions on Russian and Venezuelan oil? US suppliers who’ve muscled their way into markets once dominated by OPEC and its allies.
US oil exports have set five new monthly records since Western nations began imposing sanctions on Russia in 2022. And with trade restrictions on Venezuela set to renew in April, American barrels are beginning to displace sanctioned crude in India, one of the biggest buyers of illicit oil.
The shift underscores the extent to which sanctions have helped American crude capture market share around the world. While US oil has long been the world’s go-to flex barrel, the disruption of energy flows after Russia’s invasion of Ukraine created new pull for American barrels. Shipments to Europe and Asia surged in the aftermath, transforming the US into one of the world’s largest exporters.
Record production from the US — coming just as OPEC and its allies curb their own supply — has also helped American producers gain a bigger foothold in overseas markets. Physical oil prices are reflecting that, with WTI in Houston trading near the highest levels since October and sour benchmark Mars not far behind.
“US production is going up and OPEC and Russian production is going down — so the US, by definition, is going to have more market share,” said Gary Ross, a veteran oil consultant turned hedge fund manager at Black Gold Investors LLC.
India — the third-largest crude importer and Moscow’s second…
