Daily Energy Report
US crude imports from Arab countries, Europe’s diesel crunch, IEA “Ready to Act,” OPEC proactive policies, German gas storage, OPEC ups Russia supply, and more.
Chart of the Day: US crude imports from Arab countries are small.
Figure (1) above shows US crude imports from Arab and non-Arab countries. The chart shows that the amount and percentage of imports from Arab countries is very small. While the amount of crude imported from Arab countries now is similar to that of early 1973, the share is different. Imports from Arab countries in early 1973 were 35% of total imports. Now it’s only 12%.
EOA’s Main Takeaway
We posted this chart for three reasons:
The conflict between Hamas and Israel made people wonder whether we will see another oil embargo similar to that of 1973.
The events started on the 50th anniversary of the Arab-Israeli war of 1973 and people wondered about the embargo.
We are only a few days from the 50th anniversary of the oil embargo.
Bottom line: There will NOT be an oil embargo. The Arab countries learned from previous experiences that the oil weapon backfires. Regardless, the percentage of dependence on oil imports from the Arab world is only 12%, while it was about 35% in the early 1970s. If sanctions did not work on Russia and Iran, they will not work on the US either. One major change from the 1970s: most of the crude imported from Arabic countries is from Saudi Arabia to be used in the Saudi-owned refinery Motiva.
Note: The story circulating on social media that Qatar threatened to cut off LNG supplies unless Israel stops its attack on Gaza is FAKE.
Story of the Day