Saudi Crude Oil Imports to US Plummet to Zero Amid Iran Conflict

U.S. imports of Saudi crude oil have reached an unprecedented low, plummeting to zero in July for the first time since 1985. The decline is attributed to disruptions in Persian Gulf oil flows caused by the U.S.-Iran conflict.

The crisis has forced U.S. refiners to seek alternative sources, with Venezuela emerging as a significant beneficiary. American refineries imported around 600,000 barrels of Venezuelan crude in July, up from roughly 100,000 at the start of the year.

Phillips 66, one of the affected companies, has reduced its reliance on Middle Eastern crudes to less than 1%. The company is now using light crude from U.S. fields to replace some foreign grades.

Kpler forecasts suggest that U.S. imports of Saudi oil may rebound to about 300,000 barrels a day this month, aligning with recent historic norms.