Those sneaky Canadians sending us all of this oil! In the third of a wonderful three part series by the Energy Information Administration it seems that U.S. imports of Canadian crude oil rose to record levels during the first eight months of 2012, with Canada accounting for a growing share of total gross U.S. imports. The United States is importing more crude oil from Canada, even though the total amount of crude oil America buys from foreign suppliers is falling. Oh Canada!
The EIA says that the importance of Canadian crude oil to U.S. refiners has increased in 2012, as Canada supplied the United States with a record of nearly 2.5 million barrels per day during January-August 2012, according to the latest oil trade data from EIA. At the same time, total U.S. crude oil imports fell from 8.9 million barrels per day in 2011 to 8.7 million barrels per day through August 2012. As a result, the share of Canadian oil as a percentage of total U.S. oil imports during the eight-month period increased to 28%. Canada is the largest supplier of foreign oil to the United States, followed by Saudi Arabia, Mexico, and Venezuela. Almost 99% of Canadian oil exports are sent to the U.S. market. Canada accounted for approximately 25% of U.S. crude oil imports in 2011, averaging 2.2 million barrels per day. Make sure you go to the EIA website in the Today in Energy and check this out great charts!!
Oil is rushing up and down with the fiscal cliff talks. Of course geopolitical tensions are hot with Egypt’s ruler declaring him omnipotent and the UN decided to vote to elevate Palestine to a state. The AP reported that the United Nations has voted overwhelmingly to recognize a Palestinian state, but the Palestinians still face enormous limitations: They don't control their borders, airspace or trade, they have separate and competing governments in Gaza and the West Bank, and they have no unified army or police. In an extraordinary lineup of international support, more than two-thirds of the world body's 193 member states approved the resolution upgrading the Palestinians' status from an observer to a nonmember observer state on Thursday. It passed 138-9, with 41 abstentions. As if the Fiscal cliff was not enough.
Oil refiners back on line, but products still looking strong. Huge refining margins on distillates have heat looking weak as opposed to RBOB. Still looking bullish! Natural Gas shocked them with an injection. The EIA sent gas falling about a dime reporting that working gas in storage was 3,877 Bcf as of Friday, November 23, 2012, according to EIA estimates. This represents a net increase of 4 Bcf from the previous week. Stocks were 26 Bcf higher than last year at this time and 190 Bcf above the 5-year average of 3,687 Bcf. In the East Region, stocks were 5 Bcf above the 5-year average following net withdrawals of 12 Bcf. Stocks in the Producing Region were 135 Bcf above the 5-year average of 1,152 Bcf after a net injection of 12 Bcf. Stocks in the West Region were 50 Bcf above the 5-year average after a net addition of 4 Bcf. At 3,877 Bcf, total working gas is above the 5-year historical range. Working gas stocks in the Producing Region, for the week ending November 23.