U.S. Begins Importing Iraqi Oil After Saudis Cut Exports

Tyler Durden's picture

Authored by Zainab Calcuttawala via OilPrice.com,

The United States has begun importing Iraqi oil at a rate of 1.1 million barrels per day to replace export cuts announced by Saudi Arabia late last month, new figures compiled by Bloomberg show.

New data from the Department of Energy suggests that during the first week of June, Iraqi oil entered the U.S. at the quickest rate in the past five years – marking the first time the nation’s exports exceeded those from Saudi Arabia over the same time period.

In late May, Riyadh announced its plans to purposely reduce exports to the United States to force a reduction in the latter’s sizeable inventories, which are preventing a greater rise in global oil prices, according to Saudi Oil Minister Khalid Al-Falih.

Earlier that same month, Saudi Aramco said it would cut crude supplies to China, South Korea, and South East Asia by 1 million barrels each. The nations exports to Indian buyers in June were set to decline by just over 3 million barrels, and supplies to Japan will drop by just under 1 million barrels this month, according to a Reuters’ source.

The Organization of Petroleum Exporting Countries’ (OPEC) deal to reduce production does not set limits on the amount any member country can export to its customers. This is why Saudi cargoes to the U.S. in recent months have totaled 1.21 million barrels a day – the highest rates since 2014, the year of the oil price crash.

As the de facto leader and largest producer of OPEC, Saudi Arabia has cut its production the most of any member of the bloc. But stubbornly high fossil fuel inventories - which have been maintained worldwide, but are most readily measured in the U.S. due to open customs data – have prevented the measures from buttressing oil prices in a lasting way. Importer nations have opted to take advantage of low oil prices to stock up for the future.

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bobdobolina's picture

why we are even importing oil when the shale boom is raging is beyond me. Has it really impacted prices at the pump in the way shale has? Don't think so but eh...

English herbsman's picture

Oil isn't just Fuel, It is also plastics, Nylons and other materials. 

Our dependence on it is a shackle on society, and it is not an accident either. 

Killtruck's picture

"FINALLY!

that war is finally starting to pay for itself!" - Dick Cheney, somewhere. 

Land Snark's picture

Saddam sold it to us......and we're still buying it..so...

Ghost of PartysOver's picture

Dammit, I can't keep up.  Saudi's cut oil exports to US, the US sells arm to the Saudis, Suadi's help create the turd bowl known as Iraq, Iraq increase oil exports to US,  Israel shares intel with Saudi's,  Egypt and Saudi's go after Qatar,  US main military base in the ME is in Qatar.  Where the hell is the score card.

The_Juggernaut's picture

"why we are even importing oil when the shale boom is raging is beyond me."

 

We have refineries that process the heavy, shitty, crap oil from countries like Canadia and Venezuela.  We export light sweet crude to places that can process only that kind of oil.  There are lots of things that we both import and export, for example: Cars, food, terror...

aliens is here's picture

Nylons? Now you are talking. I love women in stockings n heels.

Land Snark's picture

A shackle?! Fine. Don't use plastics anymore and tell me how that works out. No. It's the EPA, Agenda 21 and other commie orgs and mindsets that are the shackles. Oil allows for INdependence - not dependence.

mrtoad's picture

Hemp oil does all these things also.

Erek's picture

Maybe it's some kind of payment-in-kind for all those weapons they just bought.

booboo's picture

square that one up for me

Schmuck Raker's picture

Free market stuff. Hard to recognize as it is so rarely seen.

post turtle saver's picture

we will always import oil, as the US is the largest oil refiner in the world... yes, larger than China (and, with better tech)...

not all oil imported into the US is used in the US... I keep having to say this for some reason, but fine I'll say it again...

sinbad2's picture

Well shale oil is expensive and costs more to mine than the current oil price, so they buy cheaper oil from other places.

katchum's picture

Importing oil from the enemy?

Dragon HAwk's picture

Just a little tid bit to remember... China super stuffed their Strategic reserves at these super low prices..

Conax's picture

A trillion dollars and a million dead later, we finally get something out of it. Black goo on the cheap.

sinbad2's picture

Probably for free, who would be brave enough to demand payment from the US whilst it's having a psychotic event.

Bill of Rights's picture
Son of Captain Nemo's picture

"WHY" when we have the next "Spindletop" in the works with this announced technological breakthrough (http://www.zerohedge.com/news/2017-06-07/saudi-america-%E2%80%93-how-new...) in oil extraction?

I know...

Because we're the most fiendish and "greedy" motherfuckers in existence!!!

WillyGroper's picture

howzat work?

arms for no oil?

aliens is here's picture

It's only fair after all Bush destroyed that countrry.

Philosopheconomics's picture

Finally, after buying Iraqi dinars back in 2004 it's all coming up rosy!

Philosopheconomics's picture

Finally, after buying Iraqi dinars back in 2004 it's all coming up rosy!

LawsofPhysics's picture

The spice must flow...   ...despite the "glut"...

same as it ever was...

venturen's picture

so cheney was right? Pretty soon the USA will be exporting to Saudi and Iran

francis scott falseflag's picture

 

The Saudis just said what any business running out of product would say

just before they filed for Chapter 11.

 

GHAWAR HOW COULD YOU DO THIS TO US?  

Oh boo hoo. 

RLE's picture

Well first off Fuck Dick Cheney...he got at least 1 million people killed or more, plus he got us into a never ending war with complete lies and fabrications...The fact that this ass hole is still living and free in THIS COUNTRY (he cannot go anywhere else) is a crime in and of itself...did I mention Fuck That fat assed Cheney...you Republicans and church goers that supported this ass clown and wept on 911...Fuck you too especially the religious right! Which is and always has been wrong...   

sinbad2's picture

The Saudis are running out of oil, that's why they are trying to steal their neighbours oil, Yemen Syria and now Qatar.