2013
JF-Expert Member
- Aug 2, 2011
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After years of keeping the price of crude sold to the U.S. low enough to maintain market share, Saudi Arabia is losing ground as the shale boom leaves U.S. refiners with ample supplies of inexpensive domestic oil.
Shale drilling has boosted U.S. oil output to the highest level since 1986. As refineries turn to lower-priced domestic oil to make fuel at a record pace, the Saudis and other foreign suppliers are left with dwindling slices of the market. In June, imports from Saudi Arabia accounted for the smallest share of crude processed at U.S. refineries since February 2010.
Saudi exports to the U.S. averaged 1.32 million barrels a day in 2013, the second-most of any country behind Canada. They reached 1.58 million in April, before dropping by almost half to average 878,000 over the first four weeks of August.
Saudi Arabia uses more crude domestically during summer months to generate power and meet increasing demand for air conditioning. Temperatures have been higher than normal.
Shale drilling has boosted U.S. oil output to the highest level since 1986. As refineries turn to lower-priced domestic oil to make fuel at a record pace, the Saudis and other foreign suppliers are left with dwindling slices of the market. In June, imports from Saudi Arabia accounted for the smallest share of crude processed at U.S. refineries since February 2010.
Saudi exports to the U.S. averaged 1.32 million barrels a day in 2013, the second-most of any country behind Canada. They reached 1.58 million in April, before dropping by almost half to average 878,000 over the first four weeks of August.
Saudi Arabia uses more crude domestically during summer months to generate power and meet increasing demand for air conditioning. Temperatures have been higher than normal.