U.S. strengthens role in oil market as Iran crisis weakens OPEC

The United States has strengthened its influence over global oil markets as war with Iran and disruptions in the Strait of Hormuz weakened OPEC’s role as a key market regulator, Reuters reported.

Washington helped ease the impact of the crisis by increasing exports of crude and refined products, using strategic reserves and adjusting sanctions policy, according to the report.

Reuters said the closure of the Strait of Hormuz blocked about 13% of global oil supplies and forced Gulf producers to cut output by around 9 million barrels per day.

U.S. exports of crude and refined products reached a record 12.9 million barrels per day earlier this month, with refined products accounting for more than 60% of the total, Reuters said.

The agency said the United States does not have the same centralized production-management mechanism as OPEC, but has effectively strengthened its role as a flexible supplier to global markets.