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 million barrels per day.
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 to 3.1 million bpd in the week to March 14, the lowest since March 2023.
Net U.S. crude imports fell by 1.44 million barrels per day to 741,000 bpd, the lowest since October 2023.
Crude inventories rose by 1.7 million barrels to 437 million barrels last week, the EIA said, compared with analysts’ expectations in a Reuters poll for a 512,000-barrel rise.
Refinery utilization rates rose by 0.4 percentage points in the week. But on the East Coast, utilization fell to 53.8%, the lowest since July 2020.
Phillips 66’s 258,500 barrel-per-day refinery in Linden, New Jersey, has been undergoing a major turnaround.
Refinery crude runs fell by 45,000 barrels per day, the EIA said.
Crude stocks at the Cushing, Oklahoma, delivery hub fell by 1 million barrels, 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 barrels in the week to 240.6 million barrels, the EIA said, compared with analysts’ expectations in a Reuters poll for a 2.2 million-barrel draw.
Distillate stockpiles, which include diesel and heating oil, fell by 2.8 million barrels in the week to 114.8 million barrels, versus expectations for a 300,000-barrel 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 million bpd, though product supplied of distillates rose to 4 million bpd.
Source: Reuters (Reporting by Stephanie Kelly and Arathy Somasekhar; Editing by Chizu Nomiyama)
