Saudi oil shipments to America plunge to 35-year low

      Published on Wednesday, 2 September , 2020      754 Views     
Saudi oil shipments to America plunge to 35-year low

Saudi Arabia drew the wrath of Republicans in Washington this spring by sending an armada of tankers to America to drown US oil makers with cheap crude.

Now, the kingdom has reversed course, steering the fewest barrels here since the Reagan era.

The United States imported just 264,000 barrels per day of Saudi crude during August, according to estimates from ClipperData, a commodity research firm. That’s down nearly 50% from 2019’s average.

If confirmed by official government statistics, that would mark the lowest amount of Saudi oil exports to the United States since 1985.

“Saudi crude flows bound for the US have basically dried up,” Matt Smith, director of commodity research at ClipperData, told CNN Business in an email.
The course-reversal by Saudi Arabia — from intentionally flooding the United States with excess crude to holding back barrels — underscores the kingdom’s dramatic efforts to revive depressed energy markets during the pandemic.

From price war to unprecedented cuts

In March and April, Saudi Arabia was engaged in a massive price war with Russia at the worst possible time. Saudi’s surge of shipments to the United States was designed to tank the market and crowd out high-cost producers, including frackers in North Dakota, Texas and Oklahoma.
Unfortunately, it worked. US crude crashed into negative territory in late April for the first time ever. More than two dozen US oil companies filed for bankruptcy — and many more were on the brink.
Saudi Arabia has since reached a truce with Russia, paving the way for unprecedented production cuts by OPEC and its allies.
Those cuts, along with the rebounding global economy, have lifted US crude from negative $40 a barrel in late April to $43 today.
Category Business, Oil | 2020/09/02 latest update at 5:10 PM
Source : CNN | Photocredit : Google
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