2 weeks ago
Middle Eastern Oil Influx Reaches American Shores, Easing Market Pressure
Big ships carrying oil from the Middle East are coming to the United States.
The oil is arriving after a short peace deal between the US and Iran that later fell apart.
During the peace deal, US buyers snapped up as much oil as they could.
America has been sending lots of its own oil to other countries to help them during the war.
That left American oil tanks with less oil than they have had in eight years.
New oil from places like Saudi Arabia, Kuwait, and the United Arab Emirates will help fill those tanks.
It is the first time in six years that oil from Kuwait has come to the US.
Last month, the US bought no oil from Saudi Arabia, something that had not happened since 1985.
The new oil could help keep prices from rising too high.
But no one knows how long the shipments will last because the Middle East is still dangerous.
At least 9 million barrels of Middle Eastern crude are set to arrive at US ports throughout August, according to Kpler data.
The influx follows a now-collapsed June ceasefire between the US and Iran that briefly reopened the Strait of Hormuz.
US commercial crude inventories hover near an eight-year low, with stocks rising 17.4 million barrels last week, the second-largest build ever.
US imports of Saudi Arabian oil fell to zero last month, the first time since 1985, as the Iran conflict disrupted flows.
Saudi shipments are being rerouted via longer Mediterranean routes to avoid attacks by Yemen's Houthi rebels, and Kuwaiti crude reached US shores for the first time in six years.
- Who
- The United States is importing crude from Middle Eastern producers including Saudi Arabia, the United Arab Emirates, and Kuwait.
- What
- An influx of at least 9 million barrels of Middle Eastern crude oil arriving at US ports after wartime demand squeezed American supplies.
- Where
- US ports; cargoes came via the Strait of Hormuz, Kuwait's Mina Al-Ahmadi terminal, Saudi Arabia's Yanbu port, and Egypt's Sidi Kerir terminal.
- When
- Throughout August, following a June ceasefire between the US and Iran that later collapsed.
- Why
- The US sought supplies it could secure during the brief ceasefire with Iran, and the influx may ease pressure on physical markets and keep near-term prices in check.
Key facts
- Crude arriving
- At least 9 million barrels in August
- Supplier countries
- Saudi Arabia, United Arab Emirates, Kuwait
- US commercial crude inventories
- Near an eight-year low
- Weekly inventory build
- 17.4 million barrels, second-largest on record
- Saudi imports last month
- Zero, first time since 1985
- Kuwaiti crude
- First US arrival in six years
- Record US export rate
- 6 million barrels per day during early Iran conflict
- Tracking firm
- Kpler maritime intelligence
Quotes
Matt Smith
Americas lead oil analyst at Kpler
“The Yanbu cargo may have been passed on by a typical Asian buyer because of the added cost and transit time due to Houthi threats in the Bab el-Mandeb Strait”
livemint.com
Sources
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