US imports of Saudi crude fall to zero for first time since 1985 amid Iran conflict

US imports of Saudi crude oil fell to zero in July for the first time in a full month since 1985, according to preliminary data from the US Department of Energy.

The decline comes after months of disruption to Saudi oil exports caused by the conflict between the United States and Iran, which disrupted crude flows through the Gulf and led to the closure of the Strait of Hormuz. The disruption forced US refineries to seek alternative sources of supply.

The data showed that Saudi crude shipments to the United States stopped completely in July, compared with the beginning of the year when US refineries were importing more than 800,000 barrels a day of Saudi crude.

Against this backdrop, US refiner Phillips 66 reduced crude supplies from the Middle East to less than one per cent of its total refinery feedstock, Chief Executive Mark Lashier said. He added that the company replaced part of its foreign supplies by transporting light US crude to its refinery in New Jersey.

Chevron and PBF Energy have also historically been among the largest US refiners relying on Saudi crude. Meanwhile, Saudi Aramco-owned Motiva Enterprises operates the largest refinery in the United States, located in Port Arthur, Texas, which typically processes crude from the Middle East.

At the same time, Venezuela emerged as one of the biggest beneficiaries of the shift away from Saudi crude. US imports of Venezuelan oil rose to around 600,000 barrels a day in July, compared with about 100,000 barrels a day at the beginning of the year.