In 2025, the United States sourced an average of 490,000 barrels per day (b/d) of crude oil from the Middle East Gulf region, which includes Bahrain, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. This volume represented 8% of the total 6.2 million b/d of crude oil imported by the U.S. during that year. These imports primarily consist of medium sour crude oil grades and are predominantly directed to the U.S. West Coast and Gulf Coast refineries.
While significant, crude oil imports from the Middle East Gulf are considerably less than those originating from Canada. They are, however, slightly greater than imports from Mexico. The proximity, established trade relationships, and shorter transit times associated with countries in the Americas contribute to their larger share of U.S. import volumes. Canada, Mexico, and other nations in the Western Hemisphere benefit from these logistical and historical advantages.
The U.S. West Coast, designated as Petroleum Administration for Defense District 5 (PADD 5), received 47% of all U.S. imports from the Middle East Gulf in 2025. Within this West Coast allocation, Iraq was the largest supplier, providing 139,000 b/d. Saudi Arabia contributed 62,000 b/d, and the United Arab Emirates supplied 28,000 b/d to the region.
The West Coast's reliance on imported crude oil is partly due to its lower domestic crude oil production compared to the U.S. Gulf Coast (PADD 3). Furthermore, limited pipeline infrastructure connecting the West Coast to Canadian crude oil sources makes it more dependent on seaborne imports to satisfy refinery operational needs. This dynamic underscores the region's vulnerability to global supply chains for its refining sector.
Both the U.S. West Coast and Gulf Coast regions import crude oil from the Middle East Gulf to meet specific processing requirements at their refineries. Refineries are typically configured to process certain crude oil grades and qualities to optimize their equipment and maximize the value of their refined products. The global crude oil market offers a wide variety of grades, distinguished by characteristics such as API gravity and sulfur content.
API gravity measures the lightness or heaviness of crude oil, while sulfur content indicates its sourness. Most domestic U.S. crude oil production consists of light sweet grades. However, the United States relies on imports to secure heavier, more sour grades that are essential for many refining processes. These imported grades complement the domestic supply and allow refineries to produce a broader range of valuable products.
In 2025, a substantial 88% of crude oil imports from the Middle East Gulf were classified as medium sour grades. These oils have API gravities ranging between 22 and 38 degrees and sulfur content of 0.5% or greater. This volume amounted to approximately 432,000 b/d. While this represents a significant portion of imports from the Middle East Gulf, it accounted for only about 17% of all U.S. imports of these specific medium sour grades from all global sources.
The price differential between different crude oil grades is a key indicator of their value to the refining industry. Historically, medium sour grades often trade at a discount to light sweet grades because they are more challenging and costly to refine. For example, the Mars crude oil, a medium sour grade, typically sells for less than Light Louisiana Sweet (LLS), a light sweet grade.
In 2025, the average discount for Mars crude oil relative to LLS was approximately $2 per barrel. However, market conditions can alter these price relationships. Since March, Mars crude oil has experienced a price premium over LLS, reaching $1 per barrel. This shift is attributed to supply disruptions originating from the Middle East, which have tightened the availability of certain crude grades and influenced market pricing dynamics.
The U.S. Strategic Petroleum Reserve (SPR) plays a crucial role in stabilizing domestic oil markets by storing crude oil for release during supply disruptions. Since 2024, the SPR has been acquiring crude oil with two distinct specifications: one sweet (low sulfur) and one sour (high sulfur), both of medium API gravity. These acquisitions are intended to provide a diverse range of crude oil types to meet potential refinery needs.
The SPR announced a release of crude oil on March 11, which is expected to supply volumes of displaced medium sour crude oil. This release aims to mitigate the impact of potential supply shortfalls, including those that might affect the availability of crude oil that would otherwise have been sourced from the Middle East Gulf. The SPR's strategic holdings are designed to buffer the market against such volatilities.
Volumes from the SPR are primarily distributed to refineries located along the U.S. Gulf Coast. The use of waivers for the Jones Act, a U.S. shipping regulation, can facilitate the movement of crude oil from the Gulf Coast to refineries situated on the West Coast. This regulatory flexibility can help ensure that crude oil supplies reach refiners across different regions more efficiently, particularly during times of market stress or when specific grades are in high demand.
In summary, while the Middle East Gulf remains a notable source of crude oil imports for the United States, particularly for medium sour grades essential to West Coast and Gulf Coast refineries, its overall share of U.S. imports is modest. The U.S. refining system's reliance on a diverse range of crude oil qualities highlights the importance of both domestic production and international sourcing, with the SPR acting as a critical backstop against supply disruptions.
