Why wouldn’t that affect the US? Isn’t the price of oil global? It’s not like US oil will be sold for cheaper to the local population, if that would be the case the incentive would be to export at the higher price instead, no?

If you look at gas prices in Saudi Arabia, some of it is subsidised to be lower but clearly its much cheaper to be consuming your own energy vs purchasing it internationally for a variety of reasons. The size of the effect is a messy economics question, not a black and white thing.