Re-Exports of Canadian Heavy Crude Oil from the Gulf Remain Near Record Levels

Based on the latest data from the U.S. Census Bureau, re-exports of Canadian heavy crude oil from the U.S. Gulf Coast remain near record levels as of June 2023. Over the past four months, re-exports have been above 200 Mb/d, with March 2023 marking a record high of 315 Mb/d, while the latest data for June is a strong 246 Mb/d (top chart below). While reflecting improved pipeline access for Canadian heavy crude to the Gulf Coast in the past couple of years and, more recently, attractive heavy crude oil prices, the single largest reason for the surge in re-exports of Canadian heavy oil from the Gulf is more tied to increased buying by nations that have seen a reduction in their crude oil imports from some nations as a result of production cuts by OPEC+ nations. In this context, re-exports refers to crude oil that is sourced and exported from Canada to the U.S. and then exported from the U.S. to other nations.