US imports of Saudi oil set to drop as high prices and maintenance deter buyers

US imports of Saudi oil set to drop as high prices and maintenance deter buyers

Bloomberg / Washington

US imports of Saudi Arabian crude are set to fall to the lowest level since October, as high prices and refinery maintenance deter buyers.

Shipments from the kingdom are forecast to drop to about 400,000 barrels per day in both February and March, from an average of 500,000 barrels per day in the three prior months, according to energy intelligence firm Kpler. American refineries typically conduct seasonal maintenance during February and March, leaving additional volumes for Riyadh’s more-profitable Asian market. The planned repairs are set to conclude by the spring when refineries gear up for the high-demand summer season.

The dropoff comes as the White House tries to tame runaway inflation. US President Joe Biden has discussed global energy with King Salman bin Abdulaziz al-Saud, according to a statement. So far, the kingdom has stuck to its plan to gradually increase output. Oil prices have already climbed above $90 a barrel amid ongoing geopolitical tensions over Eastern Europe, adding to inflation pressures for top consumers such as the US as pump prices surge to the highest levels in years.

Demand for the kingdom’s oil from American buyers has also been limited by placement of roughly 40mn