US oil imports hit highest level in two years despite tepid demand

By Arathy Somasekhar

HOUSTON (Reuters) – U.S. crude oil imports rose last month to the highest level in nearly two years as refineries collected heavy oil from Canada and Latin America to turn into fuel for the winter season. summer.

Crude oil imports rose to 3.1 million barrels per day (bpd) in May, the highest since July 2022, data from ship tracking service Kpler showed. Imports so far this month have remained strong, at around 2.9 million bpd so far.

Fuel demand remained tepid, with gasoline supply at 9.1 million bpd in the week ended June 14, slightly below the 10-year seasonal average, data from the U.S. Energy Information Administration showed.

U.S.-supplied product of distillate fuel oil was also about 3.7 million bpd, about 3% below the seasonal average, according to EIA data.

Canadian crude oil imports rose in May to 319,000 bpd, the highest in two and a half years, as the recently expanded Trans Mountain pipeline increased flows to the U.S. West Coast. Imports were 39% higher than in the same month of the previous year.

Supplies from Mexico, Guyana and Colombia also increased. Guyanese oil hit a record 99,000 bpd and Colombia rose to its highest level in almost two years. Imports from Mexican state oil company Pemex recovered, reversing brief cuts in exports.

“US refiners bought excess crude oil to mitigate the loss of Mexican oil,” said Rohit Rathod, market analyst at energy research firm Vortexa.

In April, Pemex reduced exports, forcing U.S. refiners to order heavier crude from Colombia and Canada, but weaker-than-expected demand from Pemex’s domestic refineries canceled cuts planned for May. Imports from Mexico this month reached 624,000 bpd, the highest level this year.

May’s top refining importers were Chevron, Marathon Petroleum, Valero Energy and Phillips 66, according to Kpler data.

(Reporting by Arathy Somasekhar in Houston; Editing by David Gregorio)