Latest News

Since the Iran war began, US imports most Middle East crude oil

Ship-tracking data revealed that U.S. imports of Middle Eastern oil are expected to reach 600,000 barrels a day in August. This is the highest level since the Iran War began. A 'brief opening of the Strait of Hormuz, and the rerouting of?Saudi crude through the Suez Canal, pushed barrels towards American ports. A dozen ships carrying Middle Eastern crude headed for U.S. port after a memorandum signed between the U.S.A. and Iran on June allowed vessels to leave the maritime chokepoint. Cargoes that travel through the Suez Canal from the Red Sea port in Saudi Arabia, Yanbu, to the United States are also boosting imports. Saudi Arabia has rerouted its crude production to Yanbu through its east-west pipe to avoid Iranian attacks against shipping in the Strait of Hormuz.

Yemen's Iran-backed Houthi terrorists launched a maritime blockade of Saudi Arabia last month, and the threat of attacks in the Bab el-Mandeb Strait at the southern end the Red Sea forced many oil tankers to travel north and leave the shipping channel via the Suez Canal.

The Suez Canal has increased exports to the United States because the trip to U.S. port is shorter than to Asia. The northern route is still an option for vessels to reach Asia. However, the journey would be nearly four weeks longer and cost more.

Matt Smith, Kpler analyst, said that sending Saudi crude via tankers to the U.S. instead of Asia could be a better option due to fleet logistics and shorter time spent on the water. The Liberian-flagged Aqualoyalty tanker, chartered by U.S. refining company PBF Energy, discharged crude oil in New Jersey at Paulsboro on Thursday. The Aframax can hold about 750,000 barrels.

The Marshall Islands flagged supertanker Front Gaula, which was loaded with Saudi Arabian crude oil at Yanbu earlier in the month and headed for the United States once it had passed the Suez Canal, has now completed its journey. The VLCC can only cross the canal partially-loaded, so the vessel takes a part of the oil on Egypt's SUMED pipe and then reloads it on the Mediterranean side. The U.S. imported no Middle Eastern crude barrels last month. Imports peaked in February of this year at 708,000 barrels per day. As of the end July, the U.S. hadn't received crude oil from Saudi Arabia in five consecutive weeks or imported any oil from Iraq six weeks in a slew. Weekly data from the Energy Information Administration revealed this.

DZONES OF EMPTY VEHICLES SAIL TO THE US At the same time, the redirection to the U.S. of some Saudi barrels has caused a shortage of oil for Asian refiners who have turned to American oil.

A ship tracking analysis and fixture data showed that at least two dozen VLCCs with empty cargo were indicating the U.S. for?picking up oil. In April, a similar large convoy sailed towards the U.S. as traders and refiners in Asia and Europe were scrambling for alternative barrels following the closure of the Strait of Hormuz. Due to the disruption of Middle?Eastern oil supply, U.S. crude has become the preferred alternative by global buyers. This is why empty supertankers are being sent to American ports in order to load crude.

Rohit Rathod is an analyst at Vortexa. He said that the number of empty vessels headed to the U.S. may be as high 40. (Reporting from Arathy S. Somasekhar, Houston; Additional reporting and editing by Georgina M. McCartney and Sanjeev MIglani.)

(source: Reuters)