Supply Chain Research

The prolonged period of U.S. oil import growth came to an end in August, with EIA data showing a 4.6% drop in volumes imported a preliminary basis. Panjiva data shows there had been 11 months of growth in the past 12, resulting in an 11.6% growth in the 12 months to July 31 on a year earlier. However, the drop is more likely to be due to interruptions from Hurricane Harvey late in the month, followed by Hurricane Irma in early September. The latter resulted in imports in the week of September 8 that were the second lowest since 2007.

Upper chart shows U.S. imports and exports of crude oil (HS 2709) in millions of barrels of oil equivalent. Lower panel shows change in imports. Data for most recent month based on Energy Information Administration import data. Source: Panjiva

The refiners with Texas coastal operations were, unsurprisingly, saw the most marked reductions in imports by sea. Valero saw a 27.5% drop on a month earlier, while Pemex dropped by 66.4%. Diversions likely explain the 69.6% rise seen by PBF and 62.5% increase in imports by Tesoro.

Chart shows U.S. imports of crude oil by sea segmented by consignee in thousand tons. Data gathered for parent company and known subsidiaries.  Source: Panjiva

Among the tanker operators, MISC’s AET experienced a 27.8% drop on a month earlier, while Teekay only dropped 4.2%. Over the longer term Teekay has outperformed too, with unchanged volumes vs. a year earlier in the past quarter compared to a 23.1% drop at AET. Euronav meanwhile saw a resurgence, shipping 3.6x the volumes of a month earlier, while Heidmar maintained its third place despite a 6.6% drop.

Chart shows U.S. imports of crude oil by sea segmented by carrier in thousand tons  Source: Panjiva