US imports of Canadian crude rose 494,000 b/d to 3.248 million b/d for the reporting week ended October 3, US Energy Information Administration data showed Wednesday.
This beat the previous weekly high of 2.994 million b/d set over the week ended September 12.
That said, the more accurate and most recent monthly data for July pegs Canadian flows at 2.802 million b/d. The record for monthly data was set in February 2013 at 2.852 million b/d.
The lion's share of Canadian imports heads to the US Midwest, where crude stocks last week jumped 3.107 million barrels to 91.6 million barrels.
Midwest demand for crude held steady last week, with net inputs up 3,000 b/d at 3.466 million b/d. This has helped to keep run rates above 91% even as many US refiners enter seasonal maintenance.
While runs are down from the record 3.818 million b/d seen in mid-July -- when run rates were higher than 100% of capacity -- they are 207,000 b/d higher year on year. That said, operable capacity in the region has grown year on year to 3.81 million b/d from 3.77 million b/d.
Strong refining margins in the Midwest suggest refiners are keen to keep profitable runs high. Western Canadian Select coking margins were pegged at $24.62/b Tuesday, slightly off the 30-day moving average of nearly $27/b.
Syncrude cracking margins in the Midwest were pegged at $21.62/b Tuesday, just off the 30-day moving average of around $24/b.
But an ongoing build-out by Enbridge of new or expanded pipeline capacity -- between points in Canada and the US Midwest, and further south to Cushing, Oklahoma, and the US Gulf Coast -- could also explain the higher imports.
The Flanagan South line, which connects Patoka, Illinois, to the NYMEX crude futures hub at Cushing, was expected to see line-fill beginning in early October, according to Enbridge Energy Partners President Mark Maki in early September.
Flanagan South was designed to allow for more Western Canadian Select barrels to eventually reach the US Gulf Coast once Phase 3 of the Enbridge Seaway twin line is ready. Deutsche Bank analysts last week pegged the Seaway line to startup in October.
WCS coking margins in the USGC came off this week, pegged at $8.42/b Tuesday, down from a 30-day moving average of close to $13/b. In fact, margins are down from over $16/b at the beginning of September.
WCS differentials at Hardisty rose 25 cents Tuesday to calendar month average of NYMEX light sweet crude (WTI CMA) minus $12.70/b, its highest value since being at WTI CMA minus $10.05/b on June 17, 2013.
