Bloomberg reported that only one Saudi oil shipment sailed to US shores this month, and that observers' expectations indicate that Saudi crude exports to the United States continue to decline in record levels, after the American market was "dumped" and confused earlier.
A report by writers Brian Wingfield and Javier Place said that Saudi Arabia, which flooded the United States with crude oil earlier this year, had cut exports to the US market unprecedentedly during the recent period.
The figures indicate that the Kingdom exported only one shipment of oil to the United States since the beginning of this June, equivalent to 133,000 barrels per day, while the rate during last April was about 1.3 million barrels per day when Riyadh flooded the world market during the price war That she fought against Russia.
According to the report, if exports continue to decline in the second half of this month, the United States' imports of Saudi crude oil may reach a 35-year low, helping the American crude market to restore its balance, according to producers and analysts.
The report quotes senior analyst at Energy Aspect Consulting Amrita Sen as saying that "Saudi oil shipments will decrease with the start of local refineries to raise production rates and the continued decline in domestic production, so American refineries will be forced to import from elsewhere and gradually get rid of inventory."
The authors mentioned in their report that the number of Saudi tankers heading to the United States may rise slightly after the American market regained its balance, and the severity of the confusion caused by the dumping operation during the price war decreased.
And Saudi oil policy last April prompted a number of American officials to publicly express their dissatisfaction, as Senator Ted Cruz published a tweet in which he said, "My message to the Saudis: Change the direction of Hell Carriers."
On the Kingdom’s policy in the coming period, a Bloomberg report quoted Saudi officials as saying that it is unlikely that the Kingdom will increase the rate of shipments to the United States in the second half of this month and until next July.
The authors consider that this new Saudi trend to reduce crude exports to the United States will have an impact on the American oil market, as crude stocks in the United States are expected to decrease, which in turn will affect prices.
The authors emphasized that the dumping operation that occurred earlier this year was one of the repercussions of the oil price war that broke out between Saudi Arabia and Russia.
Official American figures show that Saudi crude shipments to the United States were relatively low during 2019 and early 2020, at an average of 475,000 bpd, but exports experienced a sudden boom in April when Riyadh failed to reach an agreement to cut production with its partners in " OPEC Plus. "
According to the Bloomberg report, the impact of the Saudi oil "flood" was not felt until late May and early June, because shipments from Saudi Arabia take about 45 days to reach the Gulf of Mexico and the western coast of the United States.
US imports of Saudi crude jumped to about 1.5 million barrels per day with the arrival of Saudi tankers and the unloading of their cargo, and US crude stocks rose to a record level, which created tremendous pressure.
The authors pointed out that the spread of the Corona virus played a decisive role in changing the dumping policy pursued by the Saudis. With the decline in global demand for oil, OPEC Plus countries put their differences aside and proceeded to reduce production to record levels.
Projections indicate that the decline will be more noticeable in the second half of this month and early July next, with an estimate of the quantities that will be arriving on board the Saudi tankers to the American coast.
The authors also expect that the rate of Saudi oil exports to the United States will continue to decline, as informed sources reported that most of the American oil refineries are considering reducing their imports at rates less than those agreed in the contracts of next July.