US Imports Zero Saudi Oil for First Time Since 1985 Amid Venezuela Shift

The U.S. has not imported any Saudi oil in July for the first time since 1985, according to preliminary data from the U.S. Energy Information Administration (EIA). This marks a drastic reversal from March when the country was importing over 800,000 barrels of Saudi crude per day.

The shortage was due to disruptions at the Strait of Hormuz and a U.S. naval blockade that briefly cut off Venezuela's oil exports. Following Washington's expanded access to Venezuelan oil, imports of its crude rose from about 100,000 barrels per day in January to around 600,000 barrels per day in July.

Refiners with the ability to process heavy, high-sulfur crude like Valero Energy (VLO) are best positioned to take advantage of this shift. Chevron (CVX), on the other hand, has a unique license that allows it to operate inside Venezuela and carry the highest upside - but also the highest political risk.