Saudi Oil Shipments to U.S. Plunge to Zero Amid Iran Conflict

U.S. refiners are facing a significant disruption in their supply chain as Saudi crude oil shipments to the United States plummeted to zero in July, according to preliminary government data.

This marks the first full month without Saudi oil deliveries since 1985 and is attributed to disruptions in Persian Gulf oil flows tied to the U.S.-Iran conflict.

As a result, refiners have been seeking replacements for Saudi cargoes, with Venezuela emerging as a big winner in this pivot. American refiners imported around 600,000 barrels of Venezuelan crude in July, up from roughly 100,000 at the start of the year.

Kpler forecasts suggest that U.S. imports of Saudi Arabian oil may rebound to about 300,000 barrels per day this month after months of trade disruptions.