Analyst Dennis Gartman says the United States is becoming increasingly reliant on Canada, not Saudi Arabia, for oil.
Since 1993, when the U.S. was buying close to 25 million barrels of crude a month from Canada, the trend has been steadily and almost perfectly upward, Gartman explains.
Recently, however, the U.S. has been importing something closer to 60 million barrels of crude each month from Canada.
"...in the last several months our imports from the Saudis have fallen from the proverbial cliff, to the point where we are now taking an average of "only" 29.6 million barrels of oil per month from them," Gartman writes in his newsletter.
The story on the part of the Saudis is decidedly different, Gartman notes.
Back in 1993, the US was buying about of 40 million barrels of crude from Saudi Arabia each month.
“That grew… much more quietly that had the U.S. ‘dependence’ upon Canada for the imports of crude, but nonetheless steadily… to the point in ’08 where we were taking approximately 45 million barrels per month from the Saudis,” he points out.
“…in the last several months our imports from the Saudis have fallen from the proverbial cliff, to the point where we are now taking an average of “only” 29.6 million barrels of oil per month from them,” Gartman says, adding that the trends are clear.
According to the American Petroleum Institute, U.S. crude oil production in October 2009 averaged 5.36 million barrels per day, the highest level since 2005, Investopedia reports.
The API attributed the increase to oil-drilling success in the Gulf of Mexico.
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