US Imports of Oil from Saudi Arabia Stop for First Time in 40 Years

For the first time since 1985, the United States did not receive a single barrel of oil from Saudi Arabia throughout the entire month of July. This was caused by escalating tensions between Washington and Tehran. The conflict situation in the region made oil transportation through the Persian Gulf practically impossible.

According to data from the U.S. Department of Energy, oil supplies from Saudi Arabia completely stopped in July. At the beginning of the year, American refining companies were purchasing more than 800,000 barrels of Saudi oil per day on average.

The halt in supplies from Saudi Arabia particularly affected companies that use significant quantities of oil from this country, including Chevron and PBF Energy. Among them is Motiva Enterprises, which operates the largest oil refinery in the United States in Texas. The company is owned by Saudi Arabia's state oil company and primarily processes oil sourced from the Middle East.

Against the backdrop of the halt in supplies from Saudi Arabia, the U.S. significantly increased oil purchases from Venezuela. While imports at the beginning of the year amounted to approximately 100,000 barrels per day, this figure increased to 600,000 barrels in July.

There have been instances in the past when oil supplies from Saudi Arabia were suspended for several days, but July was the first full month without such imports. However, according to Kpler's forecast, supplies are expected to resume in August, reaching approximately 300,000 barrels per day.

Source: Investing.com