US Crude Imports Surge as Middle East Tensions Ease
US crude imports from the Middle East are set to reach their highest level since the Iran war began, according to ship-tracking data. In August, the US is expected to receive about 600,000 barrels per day of Middle Eastern crude, up from nearly zero in July.
The increase is due to a brief opening of the Strait of Hormuz and the rerouting of Saudi oil through the Suez Canal. This has pushed barrels toward American ports, with nearly a dozen ships carrying Middle Eastern crude headed to US ports.
Saudi Arabia has been redirecting its crude output from the Strait of Hormuz to its Red Sea port of Yanbu via an east-west pipeline to avoid Iranian attacks on shipping. However, Yemen's Iran-backed Houthi militants launched a maritime blockade of Saudi Arabia last month, forcing many tankers to head north and exit the shipping channel through the Suez Canal.
As a result, exports from the region to the US have increased, as the journey to US ports from the Suez Canal is shorter than the route to Asia. Matt Smith, an analyst with Kpler, said, 'Sending Saudi crude on tankers to the US rather than to Asia may be a preferable option given fleet logistics and the shorter time on the water.'