ArathySomasekhar

Houston (Reuters) – U.S. refiners are now buying fuel oil cargoes from Middle East countries this month, after President Joe Biden bans Russian oil imports following the invasion of Ukraine. Shipping data revealed that.

According to market research data, US imports averaged 700,000.00 barrels per daily (bpd) last year of different fuel oils and feedstocks. These mostly went to U.S. Gulf Coast oil refineries for heavy.

Last year Russia was responsible for only half of U.S. crude oil imports. Mexico was responsible for 22% and the Middle East for about 5% respectively, according to Kpler research data.

According to preliminary Refinitiv Eikon tanker tracking, at least 17% U.S. oil purchase in April will come from the Middle East.

U.S. GULFCOAST BUYERS

Next month, approximately 4 million barrels from Middle East supplier will discharge to the U.S. Gulf Coast. It is the highest amount in 12 years. According to Kpler, the total supply of Middle East suppliers was 13 million barrels for all of 2013.

Matt Smith, a Kpler analyst said that “it’s a clear indication that we’re witnessing a shift in the United States’s fuel oil supplier” Smith stated that the United States may struggle to fill the Russia-fuel oil gap, due to the decline in Russia’s imports.

The data revealed that approximately half of the fuel oil cargoes currently under contract were headed to the United States by Kuwait, Saudi Arabia and Iraq. One cargo had been scheduled for discharge in May.

Analysts expect that April will see an increase in fuel oil imports from Mexico to the United States. However, the data on cargo tracking hasn’t yet indicated the rise as the scheduling of Mexico from short routes is often very dynamic.

IRAQI BARRELS

According to Refinitiv data, April’s cargo from Kuwait and the United Arab Emirates would be discharged. March, however, will mark the arrival of Iraqi fuel oil in the United States for the first time since 2021.

U.S. officials are pressing oil suppliers to increase exports. A number of diplomats visited Venezuela this month to discuss the potential return of Venezuelan heavy crude oil to America’s Gulf Coast. For additional crude oil cargoes, refiners have also reached out to Ecuador.

Smith stated that there could be “a game of musical chairs” in months to come as Russian oil gets redirected from America to the Middle East and away to the U.S., Smith added.