Although the United States is one of the world's largest crude producers, the country keeps importing oil and petroleum products from other countries. The coronavirus pandemic tempered fuel demand around the world, resulting in lower oil prices. The US decided to take advantage of the situation in the oil market and filled its crude storage facilities with Russian products.
In 2020, US imports of oil and refined products from Russia averaged 538,000 barrels. The country's supplies accounted for 7% of total US imports, while its share was previously about 0.5%. This surge in Russian oil imports was triggered primarily by the US sanctions imposed against Venezuela, as well as the reduced volume of supplies from the OPEC countries following a cartel agreement to limit production.
Notably, American refiners do not purchase crude oil from Russia. They are interested in semi-refined fuel oil used for gasoline production plants. This does not mean that the United States depends on Russian oil. However, the very fact of increased supplies contradicts the US energy security doctrine. According to Mark Finley, a former oil analyst at the CIA, the mantra of energy independence promoted by former US President Trump is hollow. Trump's statement that the country would never again depend on "hostile" foreign suppliers meant nothing. Moreover, customs statistics confirm Finley's words.
Earlier, the US Energy Information Administration published its annual outlook for oil prices. The agency expects Brent crude to cost $173 per barrel in 2050. However, the pessimistic scenario suggests an average of just $48 per barrel.
