The war in Ukraine has triggered a surge in oil exports from the U.S. to Europe, which is trying to avoid buying Russian fuel, writes The Wall Street Journal. Oil exports have once again become a source of financial influence and geopolitical power for the U.S., and the influence on the oil market is growing, the article notes.

According to ship-tracking company Kpler, average monthly shipments of U.S. oil exports to the continent have jumped 38 percent since February 2022 compared to the previous 12-month period. Tankers began carrying more oil to Germany, France and Italy, as well as to Spain, which increased its purchases by about 88% over the period.

Kpler estimated oil inflows from the Gulf of Mexico to Europe in January at 1.53 million bpd. Thus, the EU has been a larger destination for U.S. oil in recent months than Asia.

The shale boom has once again made the U.S. a major oil producer, and rising exports mark the latest milestone in the country’s resurgence as an influential energy market player after years of weakness.

The widening price gap between European and U.S. oil has turned transatlantic supplies into a lucrative business for oil traders and, increasingly, speculators, the WSJ noted. British and Norwegian production from North Sea oil fields has long been declining, keeping Brent prices, which investors consider a major global indicator, high.

At the same time, the U.S. was producing close to a record 11.9 million bpd in 2022, according to the Energy Department. Record production volumes are projected for this year and next year. This contributes to lower U.S. oil prices and increases the difference between Brent and WTI quotations, notes Gus Vazquez of Argus Media.

Earlier we reported that oil is moderately cheaper.