US crude imports hit two-year high

US crude oil imports surged to a nearly two-year high last month, as refiners purchased heavy crudes from Canada and Latin America to produce fuels for the summer driving season.

In May, crude oil imports increased to 3.1 million barrels per day (bpd), the highest since July 2022, according to ship tracking service Kpler. This month, imports have remained robust, averaging around 2.9 million bpd

Fuel demand has been moderate, with gasoline supply at 9.1 million bpd in the week ending June 14, slightly below the 10-year seasonal average, according to the US Energy Information Administration (EIA).

Distillate fuel oil supply was around 3.7 million bpd, about 3 per cent below the seasonal average, EIA data showed.

In May, crude oil imports from Canada rose to 319,000 bpd, the highest in 2.5 years, boosted by the newly expanded Trans Mountain pipeline, which increased flows to the US West Coast. This represented a 39 per cent increase compared to the same month last year.

Supplies from Mexico, Guyana, and Colombia also increased. Guyana’s crude imports hit a record 99,000 bpd, and Colombia’s imports reached a nearly two-year high. Imports from Mexican state oil company Pemex rebounded, reversing recent export cuts.

“US refiners purchased extra crude oil to offset the reduction in Mexican crude,” said Rohit Rathod, market analyst at energy researcher Vortexa.

In April, Pemex had reduced exports, prompting US refiners to seek heavier crude from Colombia and Canada. However, weaker-than-expected demand from Pemex’s domestic refineries led to the cancellation of planned May cuts. Imports from Mexico this month have averaged 624,000 bpd, the highest this year.

According to Kpler data, the top refining importers in May were Chevron, Marathon Petroleum, Valero Energy, and Phillips 66.

Attribution: Bloomberg citing Kpler and EIA.