Saudi oil exports to US drop in June
It seems that the US has imported enough of Saudi oil this year and does not need anymore. Earlier in 2020, when Saudi Arabia offered unprecedented discounts for its crude during the price war with Russia, the United States managed to fill up its commercial and strategic oil reserves. As a result, this summer, US imports of Saudi crude have dropped to the lowest level in 35 years. The kingdom has exported just one cargo to the US so far in June which is equivalent to about 133,000 barrels a day. In April, however, Saudi oil shipments totaled 1.3 million barrels a day. This striking difference indicates that Riyadh is starting to shift its focus to other markets, especially when the outlook for oil demand in July has worsened. Meanwhile, such major oil consumers as China and the EU have also benefited from the price crash earlier this spring and have stocked up on cheap oil. This means that now Saudi Arabia will need to look for new markets. Recently, the kingdom has set its sight on Asia and increased its market share in Japan and India. At the moment, the volumes of oil imports to these countries are far from those delivered to the US and China. Still, the Saudis seem to have found a way to offset revenue losses through conquering new markets.