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U.S. Industrial Exports Hit Record Despite Drop in Crude Oil Sales

by Krystal

The United States saw a record rise in industrial exports in April, driven by strong global demand for chemicals, metals, and petroleum byproducts. This surge came even as crude oil exports dropped by more than $1.1 billion, reflecting changing trends in global energy trade.

According to data from the U.S. Census Bureau released Thursday, exports of industrial supplies and materials rose by $10.4 billion from the previous month. This increase helped narrow the U.S. trade deficit to $74.6 billion.

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Crude oil exports, often viewed as a key indicator of U.S. energy trade, saw a steep month-over-month decline. The drop came as spot prices remained weak and shipping delays hit major Gulf Coast terminals. In early April, U.S. benchmark West Texas Intermediate (WTI) crude traded around $73 per barrel. Industry insiders say global refiners were slow to buy more crude ahead of the summer season.

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“This divergence between refined material exports and raw crude oil is part of a broader decoupling trend we’re seeing in energy trade,” said Edward Morse, Global Head of Commodities Research at Citigroup. “Downstream margins are tightening globally, but U.S. refined and value-added output remains in demand.”

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Total U.S. exports rose by 3% to a record $289.4 billion in April, according to a Reuters analysis. Goods exports increased 3.4%, supported by strong shipments of chemicals, industrial machinery, and processed fuel products. Imports fell 2.6%, marking the sharpest monthly decline since 2020.

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This split between crude and refined exports highlights shifting trade dynamics amid ongoing geopolitical tensions and tariff disputes. As oil prices remain unstable, U.S. energy companies are under pressure to cut costs.

Chevron announced plans this week to lay off about 800 workers in the Permian Basin, the country’s top shale-producing region. The company cited a need to streamline operations in the face of low rig counts, weak export demand, and narrowing profit margins.

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