As a report released by US Energy Information Admin, imports of crude by USA from OPEC fell to 30 year low during March. The imports which earlier used to be around 1.5 million barrels on a daily basis has fallen by 75 % in last decade largely due to impressive production of shale oil by US and OPEC’s desire to shift to newer markets in Asia. The US govt. had been considering ways to reduce its dependence on foreign oil as they cannot forget the high prices and long lines when OPEC had issued an oil embargo on the country in 1970.
The world’s attention is focused on Strait of Hormuz a critical region through which oil from Gulf Nations moves on massive ships to the rest of the world. Recently a couple of oil tankers were attacked in this region that sent oil prices spiraling upwards. Though US reduced its dependency on OPEC oil, it has not completely eliminated it and now China is highly dependent on this source for its energy needs. The OPEC nations have gladly shifted their supplies to China and other fast growing economies of Asia.
Demand of oil by China jumped by 3 % during 2018 that was double of demand increase by rest of the world said OPEC. It is expected to multiply this year even though there are trade tensions and strong emission norms and high demand for electric vehicles. According to EIA the overall imports of crude oil by USA has declined and OPEC share has also dipped. Output of oil within United States has doubled within the past couple of decades helping it to surpass Russia and Saudi Arabia as the leading producer of oil in the world. Production of oil within US has surged by 2.2 million barrels on a daily basis since 2018 making it the highest ever production in a year.