US imports of Saudi oil set to drop
Saudi crude imports to the United States totaled 309,000 barrels per day in March, the lowest amount seasonally since 1987, according to Energy Information Administration.
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Shipments from the kingdom are expected to dip to around 400,000 barrels per day in February and March.
Saudi Arabian oil imports to the United States are expected to drop to their lowest level since October, as high prices and refinery maintenance dissuade purchasers, according to Bloomberg.
Shipments from the kingdom are expected to dip to around 400,000 barrels per day in February and March, down from an average of 500,000 barrels per day in the previous three months, energy intelligence firm Kpler reported.
The decline occurs as the White House works to rein in spiraling inflation. According to a release, US President Joe Biden discussed global energy with Saudi King Salman bin Abdulaziz Al-Saud; So far, the kingdom has committed to its objective of increasing output gradually. Oil prices have already risen past $90 per barrel due to continuous geopolitical concerns in Eastern Europe, adding to inflationary pressures for top consumers such as the United States as pump prices reach new highs.
Read more: Oil Prices on the Rise after OPEC+ Refused a US Call to Boost Production
The Strategic Petroleum Reserve has placed around 40 million barrels of high-sulfur oil that can substitute Saudi crudes, limiting demand for the kingdom's oil from American purchasers. Oil price spikes in the Middle East have also turned off some US customers, allowing for a greater volume to go east, according to traders. Saudi Arabia's exports often flow to Asian markets in excess of 60%.
On his account, Matt Smith, an oil analyst at Kpler, said: “Saudi is focused on keeping Asian clients happy, with volumes boosted so far this month to eastern Asia and China in particular.”
“More barrels heading east has been the result of Saudi OSPs (Official Selling Price) to the U.S., which were hiked in January and March -- and kept flat in February, while they were cut to Asia,” he stressed.
It seems that the US is suffering from an economic crisis that is unprecedented in its scale, affecting many vital sectors and forcing more US citizens to plunge into poverty.
