Oil from Saudi Arabia has disappeared from the US market for the first time in 40 years.

The USA has been left without Saudi oil for the first time in 40 years

In July, the USA did not receive any crude oil shipments from Saudi Arabia, marking the first such occurrence since 1985. The main reason was supply disruptions due to the conflict in Iran.

This supply gap was caused by the conflict in Iran, which effectively blocked part of the crude oil flows through the Persian Gulf. At the beginning of the year, American refineries purchased over 800,000 barrels of Saudi oil per day, but are now forced to seek alternative sources of raw materials.

Phillips 66 CEO Mark Lashier reported that due to the current situation, the share of Middle Eastern oil in their production has declined to less than 1%. Instead, they are using stocks of light oil from American fields. Also historically dependent on Saudi supplies are companies like Chevron, PBF Energy, and Motiva Enterprises, which are now forced to reorient their purchases.

This new supply stream was quickly captured by Venezuela. In July, the USA imported about 600,000 barrels of Venezuelan oil, whereas, at the beginning of the year, this figure was only 100,000 barrels per day.

According to Kpler, in August, Saudi crude oil supplies to the USA may partially recover to a level of 300,000 barrels per day, approaching recent historical levels. Meanwhile, oil prices continue to rise amid concerns over supply security through the Strait of Hormuz, one of the world’s key energy transit routes.