Arab Press

بالشعب و للشعب
Friday, Aug 22, 2025

Saudi oil shipments to America plunge to 35-year low

Saudi oil shipments to America plunge to 35-year low

Saudi Arabia drew the wrath of Republicans in Washington this spring by sending an armada of tankers to America to drown US oil makers with cheap crude. Now, the kingdom has reversed course, steering the fewest barrels here since the Reagan era.

The United States imported just 264,000 barrels per day of Saudi crude during August, according to estimates from ClipperData, a commodity research firm. That's down nearly 50% from 2019's average.

If confirmed by official government statistics, that would mark the lowest amount of Saudi oil exports to the United States since 1985.

"Saudi crude flows bound for the US have basically dried up," Matt Smith, director of commodity research at ClipperData, told CNN Business in an email.



The course-reversal by Saudi Arabia -- from intentionally flooding the United States with excess crude to holding back barrels -- underscores the kingdom's dramatic efforts to revive depressed energy markets during the pandemic.

From price war to unprecedented cuts


In March and April, Saudi Arabia was engaged in a massive price war with Russia at the worst possible time. Saudi's surge of shipments to the United States was designed to tank the market and crowd out high-cost producers, including frackers in North Dakota, Texas and Oklahoma.

Unfortunately, it worked. US crude crashed into negative territory in late April for the first time ever. More than two dozen US oil companies filed for bankruptcy -- and many more were on the brink.

Saudi Arabia has since reached a truce with Russia, paving the way for unprecedented production cuts by OPEC and its allies. Those cuts, along with the rebounding global economy, have lifted US crude from negative $40 a barrel in late April to $43 today.

"The collapse in US crude imports from Saudi Arabia...reflects the lurch from an epic OPEC+ market share contest in the spring to unprecedented cuts and discipline during the summer," Robert McNally, president of consulting firm Rapidan Energy Group, told CNN Business in an email.

It's no coincidence Saudi Arabia is focusing its efforts on the United States.

Not only is it the world's largest oil consumer, but the United States is the most visible market to the investment community. Statistics on its oil flows and inventories move markets because they are trusted and released weekly.

"The US has the most transparent and most timely market for data. [The Saudis] get the biggest bang for their buck," Smith said.

Winning back Washington's good graces


Beyond the market impact, the kingdom may also be working to get back into the good graces of Washington.

President Donald Trump, normally a fan of cheap oil, voiced displeasure in the spring over Saudi Arabia's oil strategy, fearing it would hurt American oil companies. Indeed, several high-profile oil companies have filed for bankruptcy, including fracking pioneer Chesapeake Energy (CHK). Trump took credit for brokering the record OPEC+ production cuts.

Helima Croft, head of global commodity strategy at RBC Capital Markets, said there is a "political component" to Saudi Arabia's strategy of slashing shipments to the United States.

"If you want to show Washington you're serious about restoring the US-Saudi partnership, that's a factor in this decision," Croft, a former CIA analyst, told CNN Business.

US lawmakers were so incensed by Saudi Arabia's springtime surge of oil shipments to the United States that some called for Trump to impose tariffs on the kingdom.

Senator Kevin Cramer, a Republican from North Dakota, where oil and gas is a major driver of the state's economy, even urged Trump in April to "prevent" Saudi oil tankers from unloading in the United States.

Not too hot, not too cold -- for now


But talk of punishing Saudi Arabia has vanished now that crude prices have rebounded, albeit only to a sorta-kinda happy medium. At $43, crude is still well below the recent high of $76 in October 2018.

"This current price range serves President Trump well. It's still low so it's good for consumers," said RBC's Croft. "And he can point to where prices have moved up from to say, 'Look what I've done for US producers.'"

As the CNN Business recovery tracker shows, the US national average gas price stands at $2.22 a gallon. That's well above the April low of $1.77 but lower than before the pandemic erupted.

"The most amazing thing about President Trump is he went from being a critic of OPEC because he was focused on the US consumer," Croft said, "to being the champion of collective output action in defense of the US energy producer."

Trump and Big Oil will be happy to learn that Saudi Arabia is continuing to steer tankers away from US shores.

Few ships carrying Saudi crude will reach the United States before October. September's imports from Saudi Arabia are on track to plunge by another 47% to just 140,000, according to preliminary estimates by ClipperData.

Of course, if Saudi Arabia holds back so much crude that gasoline prices rise toward $3 a gallon again before the November election, expect Trump to change his tune.

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Dogfights in the Skies: Airbus on Track to Overtake Boeing and Claim Aviation Supremacy
Tim Cook Promises an AI Revolution at Apple: "One of the Most Significant Technologies of Our Generation"
Are AI Data Centres the Infrastructure of the Future or the Next Crisis?
Miles Worth Billions: How Airlines Generate Huge Profits
Zelenskyy Returns to White House Flanked by European Allies as Trump Pressures Land-Swap Deal with Putin
Beijing is moving into gold and other assets, diversifying away from the dollar
Trump Backs Putin’s Land-for-Peace Proposal Amid Kyiv’s Rejection
Zelenskyy to Visit Washington after Trump–Putin Summit Yields No Agreement
Iranian Protection Offers Chinese Vehicle Shipments a Cost Advantage over Japanese and Korean Makers
United States Sells Luxury Yacht Amadea, Valued at Approximately $325 Million, in First Sale of a Seized Russian Yacht Since the Invasion of Ukraine
Saudi Arabia accelerates renewables to curb domestic oil use
Cristiano Ronaldo and Georgina Rodríguez announce engagement
Asia-Pacific dominates world’s busiest flight routes, with South Korea’s Jeju–Seoul corridor leading global rankings
Private Welsh island with 19th-century fort listed for sale at over £3 million
Sam Altman challenges Elon Musk with plans for Neuralink rival
Australia to Recognize the State of Palestine at UN Assembly
The Collapse of the Programmer Dream: AI Experts Now the Real High-Earners
Armenia and Azerbaijan to Sign US-Brokered Framework Agreement for Nakhchivan Corridor
British Labour Government Utilizes Counter-Terrorism Tools for Social Media Monitoring Against Legitimate Critics
WhatsApp Deletes 6.8 Million Scam Accounts Amid Rising Global Fraud
Texas Residents Face Water Restrictions While AI Data Centers Consume Millions of Gallons
India Rejects U.S. Tariff Threat, Defends Russian Oil Purchases
United States Establishes Strategic Bitcoin Reserve and Digital Asset Stockpile
Thousands of Private ChatGPT Conversations Accidentally Indexed by Google
China Tightens Mineral Controls, Curtailing Critical Inputs for Western Defence Contractors
JPMorgan and Coinbase Unveil Partnership to Let Chase Cardholders Buy Crypto Directly
British Tourist Dies Following Hair Transplant in Turkey, Police Investigate
WhatsApp Users Targeted in New Scam Involving Account Takeovers
Trump Deploys Nuclear Submarines After Threats from Former Russian President Medvedev
Germany’s Economic Breakdown and the Return of Militarization: From Industrial Collapse to a New Offensive Strategy
Germany Enters Fiscal Crisis as Cabinet Approves €174 Billion in New Debt
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
AI Raises Alarms Over Long-Term Job Security
Russia Formally Recognizes Taliban Government in Afghanistan
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Germany Seeks Taliban Deal to Deport Afghan Migrants
Emirates Airline Expands Market Share with New $20 Million Campaign
Robots Compete in Football Tournament in China Amid Injuries
×