U.S. crude oil exports in the first half of the year were higher than they were during the same period last year, despite the coronavirus pandemic decimating demand worldwide.
The country exported an average of 3.2 million barrels per day in the first half of 2020, up from 2.9 million barrels per day in the first half of 2019, according to a new Energy Department report.
“U.S. crude oil exports reached a record high (of 3.7 million barrels per day) in February 2020 and have since fallen in each month through June,” the Energy Information Administration said. “However, U.S. crude oil exports in the first half of the year are still higher than they were in the first half of 2019.”
Exports to China in May and June drove this increase, growing to 361,000 barrels per day in the first half of 2020, up from 213,000 barrels per day in the first half of 2019. Ed Hirs, an energy economist at the University of Houston, said China saw an opportunity to add to their strategic stockpile while crude prices were cheap.
"You need the crude oil for the future, you might as well buy it now," Hirs said. "It really made a lot of sense to buy it at less than $40 a barrel. The fact that China kept buying was helpful. Otherwise, we would have seen prices a lot lower for longer."
Canada took in the most U.S. crude during the first half of 2020, followed by China, The Netherlands, South Korea and the United Kingdom. U.S. crude oil exports to Canada and South Korea were down 19 percent and 27 percent year over year, while exports to The Netherlands and the U.K. were up 11 percent and 18 percent respectively between January and June.
On the other hand, U.S. crude oil imports were down 12 percent, averaging 6.2 million barrels per day during the first half of the year. The U.S. imported the most oil from Canada, Saudi Arabia, Mexico and Iraq.
The coronavirus pandemic earlier this year upended the global trade of crude as the virus wiped out demand for petroleum products worldwide. The EIA estimates that global petroleum demand fell to 90 million barrels per day in the first half of the year, down from 100.7 million barrels per day in the first half of last year.