Saudi Arabia’s crude oil exports to the US in June have fallen sharply compared to the earlier months of this year when the country was engaged in a volume war with Russia.
So far in June, Saudi Arabia has imported just one cargo to the US, about 133,000 bpd. In April, the figure was 1.3 million bpd. As of June 10, the US had received almost 10 million barrels of Saudi crude, compared with 16.9 million barrels for all of June last year.
If the low level is maintained, it could be the lowest level in 35 years and supported the rebalance of the US crude market.
Analyst Amrita Sen of Energy Aspects Ltd. opined that just as the US domestic refiners start raising runs and domestic production, Saudi oil arrivals would continue declining. She expected that US refiners will have to import from elsewhere and run down stocks.
A Saudi oil industry officials speaking in private expected a slim possibility of the country to increase US imports in the second half of June to July as by slashing it, the kingdom could influence the most highly visible oil market in the world as American customs data allow for near real-time monitoring of shipments.
Lesser Saudi imports could reduce the US crude stockpiles which could power up prices.
However, aside from the US, Saudi’s oil exports to China have also fallen to roughly 1.3 million bpd to June 15, while in May, it averaged by nearly 2 million bpd.
On the contrary, exports to India and Japan have increased so far this month.
