Saudi Oil Supplies to US Halted for First Time in 35 Years Amid Hormuz Disruptions

Oil imports from Saudi Arabia to the United States in July fell to zero for the first time since 1985, according to preliminary data from the US government. The drop in supplies was caused by disruptions in exports from the Persian Gulf due to the conflict between the US and Iran and restrictions on navigation through the Strait of Hormuz.

Previously, American oil refineries purchased over 800,000 barrels of oil per day from Saudi Arabia. However, after a rise in oil prices associated with supply disruptions, they began looking for alternative sources of raw materials. One such source is Venezuela, which became the main alternative supplier to US refiners.

The volume of oil imports from Venezuela increased to about 600,000 barrels per day in July against around 100,000 at the beginning of the year. Phillips 66 reduced its share of oil from the Middle East at its enterprises to less than 1%, replacing some of the imported supplies with oil from fields in the United States.

Analysts predict that the drop in supplies from Saudi Arabia may be temporary, and as early as August, Saudi oil imports to the US may recover to about 300,000 barrels per day. The current situation is attributed to a recent agreement between Iran and Oman to fully open the Strait of Hormuz for navigation, pending approval by Iran's Supreme National Security Council.