EIA: U.S. crude imports from Canada fall to 2-yr low after tariff developments
U.S. crude imports from Canada fell to the lowest in two years as U.S. net crude imports also sank, after President Donald Trump's administration imposed tariffs on imported crude from its northern neighbor.
Despite the fall in imports, U.S. crude inventories rose more than expected last week as domestic crude production stayed near a record high at 13.6 MMbpd.
Trump already imposed tariffs on imported crude from Canada and Mexico but then issued exemptions for producers who can prove they comply with the trade agreement between the three countries, the United States-Mexico-Canada Agreement.
Crude imports from Canada fell by 541,000 bpd to 3.1 MMbpd in the week to March 14, the lowest since March 2023.
Net U.S. crude imports fell by 1.44 MMbpd to 741,000 bpd, the lowest since October 2023.
Crude inventories rose by 1.7 MMbbl to 437 MMbbl last week, the U.S. Energy Information Administration (EIA) said, compared with analysts' expectations in a poll for a 512,000-bbl rise.
Refinery utilization rates rose by 0.4% in the week. But on the East Coast, utilization fell to 53.8%, the lowest since July 2020.
Phillips 66's 258,500-bpd refinery in Linden, New Jersey, has been undergoing a major turnaround.
Refinery crude runs fell by 45,000 bpd, the EIA said.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1 MMbbl, the EIA said.
Brent crude futures and U.S. West Texas Intermediate crude futures edged higher after the data, and both benchmarks last rose about 0.9% by 12:48 p.m. EDT (1648 GMT).
Meanwhile, U.S. gasoline stocks fell by about 530,000 bbl in the week to 240.6 MMbbl, the EIA said, compared with analysts' expectations in a Reuters poll for a 2.2-MMbbl draw.
Distillate stockpiles, which include diesel and heating oil, fell by 2.8 MMbbl in the week to 114.8 MMbbl, versus expectations for a 300,000-bbl drop, the EIA data showed.
"The EIA showed a net draw including products, which is incrementally bullish," said Josh Young, chief investment officer at Bison Interests.
Total product supplied - a proxy for demand - fell to 19.4 MMbpd, though product supplied of distillates rose to 4 MMbpd.
Comments