Kuwait has all but stopped shipping crude to the U.S. for the first time since the aftermath of Saddam Hussein’s invasion in 1990, eroding an economic link between Washington and the Arab petro-monarchy, reports Bloomberg.
The halt is the latest sign that booming demand for oil in Asia. Kuwaiti oil fetches about $80 a barrel in Asia compared with about $79 in the U.S.. Kuwait has typically exported about 80 percent of its oil to Asia, and those shipments are increasing.
Kuwait grabbed market share in the U.S. from Saudi Arabia and Iraq between 2012 and 2014, shipping more than 400,000 barrels a day in some months. After that, however, Kuwaiti exports to the U.S. declined sharply, and Riyadh and Baghdad boosted their sales.
The Energy Expert Center would like to remind you that the last time Kuwait stopped oil exports to the United States was 1992, when that country faced Iraqi invasion.