Saudi Arabia's Oil Tanker Flotilla Is Reaching The U.S., Despite Some Objections

May 4, 2020 6:23 PM ET
JACKIE NORTHAM

A flotilla of Saudi tankers loaded with crude oil has begun arriving on the U.S. Gulf Coast, worrying American shale producers who face uncertainty because of an oversupply of oil.

At least 18 very large crude carriers, each carrying 2 million barrels of oil, are headed to the U.S., according to Michelle Wiese Bockmann, markets editor and oil analyst for Lloyd's List, a shipping news service in London.

The first tanker, the Dalian, arrived last Friday and is floating off the coast of Houston and has yet to discharge any of its cargo, according to Lloyd's shipping tracking. The last one is due to arrive at the end of May.

All the ships were loaded in eastern Saudi Arabia in late March and early April, Wiese Bockmann says.

The surge in Saudi oil shipments comes amid an oil glut and an estimated 30% drop in global demand because of the coronavirus pandemic. It also adds to tanker congestion at U.S. ports, as fuel storage runs short. American oil producers and senators are pressuring the Trump administration to block the shipments.

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