In May, U.S. crude oil imports reached their highest level since July 2022, averaging 3.1 million barrels per day (bpd) as refiners procured heavy crudes from Canada and Latin America for the summer driving season. This marked a significant increase, with imports remaining robust at around 2.9 million bpd in June so far, according to ship tracking data from Kpler. Despite the rise in imports, fuel demand stayed below the 10-year seasonal average, with gasoline demand at 9.1 million bpd and distillate fuel oil at 3.7 million bpd.
Canadian crude imports surged to 319,000 bpd in May, the highest in 2.5 years, thanks to the expanded Trans Mountain pipeline increasing flows to the U.S. West Coast. This figure was 39% higher compared to May of the previous year. The rise in imports was partly driven by U.S. refiners seeking alternatives to Mexican crude, following Pemex’s export reductions in April. However, Pemex’s domestic refineries’ lower-than-expected demand led to the cancellation of planned May export cuts, resulting in U.S. imports from Mexico reaching 624,000 bpd, the highest this year.
Key importers of crude oil in May included Chevron, Marathon Petroleum, Valero Energy, and Phillips 66, as per Kpler data. These refiners adapted to shifts in supply and demand, ensuring steady procurement of crude to meet fuel production needs amidst fluctuating market conditions.
Source: Reuters