Tags: donald trump | us oil supply | prices | iran | israel

Report: US Oil Output Shields Against Supply Shocks

By    |   Wednesday, 18 March 2026 12:07 PM EDT

The United States is positioned to withstand major oil supply disruptions as the world's largest oil and natural gas producer, with output already at a record 13.6 million barrels per day and expected to climb toward 14 million, while additional drilling rigs are being brought back online.

Forbes reported that market analysis from several sources shows U.S. domestic supply strength means Americans may face higher fuel prices but are unlikely to see outright shortages, even as global flows tighten following disruptions tied to the U.S.-Israel conflict with Iran.

U.S. oil producers have started bringing idled drilling rigs back online, adding two last week to reach a total of 553 active rigs, though that remains 39 below the level seen a year ago.

U.S. production is already at a record 13.6 million barrels per day and is expected to rise toward 14 million by the end of the year.

Countries most vulnerable to shortages are those heavily dependent on oil shipments through the Strait of Hormuz with limited reserves, led by Myanmar, Vietnam, and the Philippines, which source more than 80% of their oil through the route and hold roughly one month of supply.

Singapore also faces elevated risk with about 40 days of inventory tied to 680,000 barrels per day of Hormuz-linked imports, while Thailand holds about 50 days of supply tied to 400,000 barrels per day.

South Korea and India face significant exposure due to high import volumes through Hormuz, though both maintain moderate buffers of roughly 50 to 70 days of supply through a mix of reserves and diversified sourcing.

Indonesia is in a stronger position with the ability to withstand disruptions for about 160 days, while Japan's large strategic reserves extend its cushion to roughly 200 days without Hormuz shipments.

China appears the most insulated among major importers despite heavy reliance on the route.

Its strategic reserves are estimated at 1.3 billion barrels and diversified supply lines allow it to withstand up to 300 days without Hormuz imports.

Global supply disruptions remain significant, with estimates showing between 6.7 million and 10 million barrels per day of Gulf production affected, representing a meaningful share of the world's roughly 100 million barrels per day consumption.

Alternative transport routes are partially offsetting losses as Saudi Arabia increases flows through its East-West pipeline and the United Arab Emirates routes some supply outside the Strait, though these systems are under strain and have faced reported attacks.

Short-term mitigation efforts include demand reductions such as remote work policies and reduced energy use, alongside shifts in power generation as countries like South Korea expand coal and nuclear output.

China is also positioned to offset some oil and liquefied natural gas losses by increasing coal use and rapidly expanding renewable energy capacity, adding substantial new generation this year.

International reserves may provide limited relief as the International Energy Agency plans to release 400 million barrels, though this is not enough to fully replace disrupted supply and will need to be replenished later.

Analysts expect conditions to gradually improve as production from countries such as Venezuela increases over time, easing pressure on global markets.

President Donald Trump railed on NATO leaders on Tuesday for failing to support the military strikes against the radical Islamic leadership of Iran.

Trump, who has been pressing allies to help safeguard the critical Strait of Hormuz to ease a chokepoint on the region's oil exports, fumed that the U.S. is not getting support "despite the fact that we helped" NATO "so much."

Trump said that it was in allies' interest to prevent Iran from securing a nuclear weapon.

Jim Mishler

Jim Mishler, a seasoned reporter, anchor and news director, has decades of experience covering crime, politics and environmental issues.

© 2026 Newsmax. All rights reserved.


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The United States is positioned to withstand major oil supply disruptions as the world's largest oil and natural gas producer, with output already at a record 13.6 million barrels per day and expected to climb toward 14 million, while additional drilling rigs are being brought back online.
donald trump, us oil supply, prices, iran, israel
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2026-07-18
Wednesday, 18 March 2026 12:07 PM
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