Texas imported record Canadian crude in June

Imports of Canadian crude into the US rose in June by 3pc from May, buoyed by a rebound in oil sands production and record-setting shipments into Texas.

The US imported 3.3mn b/d of Canadian crude in June, up by 102,000 b/d from a multi-year low in May, according to the Energy Information Administration (EIA). The latest data point is still 17pc lower than the 4.1mn b/d imported in February.

Texas in June imported an average of 474,000 b/d from Canada, topping the previous high by 26,000 b/d, as shippers set their sights on the US Gulf coast again. Texas imports rose by 176,000 b/d from May, the largest monthly gain on record.

Heavy crude accounted for 424,000 b/d of the total volume into Texas, up by 121,000 b/d from May and the fifth highest imports on record. A resurgence in heavy shipments by Cenovus, LyondellBasell, ExxonMobil, MEG Energy and Motiva contributed to the monthly gain.

Cenovus shipped the most crude into Texas at 102,000 b/d, up more than 40,000 b/d from May. The Calgary-based company said it hit record production at its Christina Lake project in June, part of a wider rebound in production from Alberta's oil sands region.

Western Canadian Select (WCS) at Hardisty, Alberta, settled as low as $3.54/bl in April before rising to about $12/bl in May and then nearly $34/bl in June, prompting higher Canadian crude production.

Illinois remained the top importer of Canadian crude in June at 1mn b/d, in-line with the prior month, as a drop in heavy crude was offset by imports of other grades. About 621,000 b/d of heavy Canadian crude was imported into Illinois in June, down by 12pc from May. Marathon and Phillips 66 took less crude month-over-month, while Cenovus also decreased imports by 26,000 b/d to almost zero.

ExxonMobil and Phillips 66 remain the largest importers into Illinois, regardless of grade, at 293,000 b/d and 250,000 b/d, respectively.

Nationwide, Phillips 66 was the largest importer of Canadian crude at 501,000 b/d in June, even as volumes for the refiner declined by 85,000 b/d from May. BP and ExxonMobil were next at 410,000 b/d and 406,000 b/d, respectively.

By Brett Holmes