EIA: US Mar Crude Imports -1.8% On Year; 20-Year Low From Saudi

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29 May 2009

U.S. crude oil imports from Saudi Arabia, the world's largest oil exporter, fell to their lowest level in more than 20 years in March, government data released Thursday show. Figures from the Energy Information Administration show imports from the Saudis plunged 38.5% from a year earlier, to 944,000 barrels a day, the lowest level since November 1988.
Saudi Arabia accounted for 10% of U.S. imports in the month, its lowest share since May 1987, EIA data show. Saudi dropped to the No. 4 ranking among top U.S. crude oil sources, for the first time since April 2004, behind Canada, Mexico and Venezuela.
The decline in crude supplies from the desert kingdom comes as Saudi Arabia, the de facto leader of OPEC, led oil exporters in slashing production amid crumbling demand and rising global inventories. The EIA estimated Saudi Arabia's output in early 2009, when oil arriving in the U.S. would have been pumped, dropped to a 15-year low of just over 8 million barrels a day.
The U.S. wasn't alone in seeing less Saudi crude in the month, as official data from China showed imports of Saudi crude fell 27% year-on-year and were nearly 22% below the February level. Even with the declines, Saudi Arabia was the biggest crude oil supplier to China, which is the second-biggest oil consumer in the world behind the U.S.
U.S. crude oil imports in March averaged 9.441 million barrels a day, up 2.6% from February, but down 1.8% from a year earlier and the lowest rate of crude imports in March since 2003.
Canada was the top crude oil supplier for the 37th straight month.
The EIA reported U.S. oil demand in March fell 5.4%, or more than 1 million barrels a day, from a year earlier to a 12-year low for the month of 18.672 million barrels a day. Demand fell on a year-to-year basis for the 20th straight month in March.
The gain in imports in the month help push company-held crude oil inventories at the end of March to 365.8 million barrels - the highest level since August 1990 and 1.3% above earlier estimates for the month, EIA data show. March imports include some 221,000 barrels a day brought in and shipped to the Strategic Petroleum Reserve. The emergency stockpile grew by more than 5 million barrels in the month to a record level of 712.8 million barrels.
Commercial crude stocks rose as U.S. refiners slashed processing rates as the weak economy sapped demand for petroleum products, as witnessed by gasoline demand which was at a six-year low for the month. Refiners cut crude oil processing by 1.9% to near 14.1 million barrels a day, a 12-year low for the month. Excluding months in 2005 and 2008 when hurricanes disrupted refinery operations, crude processing rates were the lowest in March in any month since February 2000.

Source: Dow Jones