U.S. Crude Imports Reach Two-Year High Despite Weak Demand, Reports Reuters

By Arathy Somasekhar

HOUSTON (Reuters) – Oil imports in May reached their highest levels in nearly two years, as refiners increased purchases of heavy crude from Canada and Latin America in preparation for the summer driving season.

According to ship tracking data, crude oil imports jumped to an average of 3.1 million barrels per day (bpd) last month, the highest figure since July 2022. Current imports for June have remained robust, averaging around 2.9 million bpd.

Despite the increase in imports, fuel demand has been relatively sluggish. Data from the U.S. Energy Information Administration indicated that gasoline supply was at 9.1 million bpd for the week ending June 14, slightly under the ten-year seasonal average. Similarly, distillate fuel oil supply was approximately 3.7 million bpd, about 3% below the seasonal average.

Imports of crude oil from Canada rose to 319,000 bpd in May, marking the highest level in two and a half years. This increase was aided by the expanded Trans Mountain pipeline, which enhanced flows to the U.S. West Coast. This figure represents a 39% increase compared to the same month last year.

Additionally, supplies from Mexico, Guyana, and Colombia also saw increases. Notably, Guyana’s crude production reached a record 99,000 bpd, while Colombia’s levels were near a two-year high. Imports from Mexico’s state oil company also rebounded after a brief period of reduced exports.

Market analyst Rohit Rathod from Vortexa explained that U.S. refiners turned to heavy crude from Colombia and Canada to offset the reduced availability of Mexican crude oil.

Pemex had previously cut exports in April, prompting refineries in the U.S. to seek alternatives. However, domestic demand from Pemex’s refineries fell short of expectations, leading to a cancellation of planned cuts for May. Consequently, imports from Mexico this month have surged to 624,000 bpd, the highest level for 2023.

Leading the way in crude oil imports for refining in May were prominent companies such as Chevron, Marathon Petroleum, Valero Energy, and Phillips 66, according to the tracking data.