Canada, Not Russia, Now Leading U.S. Importer Of Refined Petroleum Products

Canada now leads Russia in U.S. imports in the category of refined petroleum products, according to the most recent data from the U.S. Census Bureau, which is through February.

The figures predate, of course, the Russian invasion of Ukraine and any subsequent sanctions.

In response to the ongoing assault, the U.S. Congress passed legislation yesterday solidifying energy-related sanctions previously announced by President Biden and removing Russia’s most-favored-nation status, legislation he said he would sign into law.

In a previous post, as the invasion of Ukraine was beginning and as Biden and other Western leaders were weighing energy sanctions eventually imposed against Russia, I wrote that in 2021 Russia had been the United States’ leading foreign supplier of gasoline and other refined petroleum products.

While the refined petroleum category includes regular and unleaded gasoline, jet fuel and diesel fuel, it also includes dozens of other biproducts of the refining process.

One, so-called “heavy fuels” or “bunker fuels” are most closely associated with the shipping industry and are known for higher emissions of sulfur dioxide and nitrogen oxides. Despite the damage done to the environment, the shipping industry has used bunker fuels because they are considerably less expensive in an industry that uses great quantities of fuel.

Of the Russian imports in the refined petroleum category this year, just under 70% fall into the leading “heavy fuels” category, compared to just 7% for Canada and 26% for the United States overall.

In fact, when considering refined petroleum product imports by tonnage, Russia remains on top, at 25% of the total to Canada’s 18% — given the U.S. propensity to import “heavy fuels” from Russia.

Looking at all Russian imports into the United States through February, refined petroleum products accounted for 45% by value and 70% by tonnage.

Thanks to the increased value of oil and, consequently, refined petroleum products, U.S. trade with Russia was greater in February this year than any year since 2012. (Again, this does not take into account the after-effects of the invasion of Ukraine.)

The total for all U.S. trade with Russia in the first two months of the year was $5.43 billion, enough for it to rank No. 23 among the nation’s trade partners. Imports of refined petroleum products — largely heavy fuel oil — was valued as $2.03 billion.

Canada, which supplies a majority of U.S. imported oil, and Russia, which is the world’s largest oil exporter — just not to the United States — have recently tussled for the top rank when it comes to supplying the United States with refined petroleum products.

In the all-encompassing refined petroleum category, Russia led in 2021 and 2020, with just under 21% of the U.S. total in 2021 and 21.68% in 2020. For Russia, it was only the second and third years above 20% of all imports in the category.

In the five years prior, Canada had ranked first, with a total ranging from just over 18% to slightly more than 22%.

For more than a decade, the two have accounted for more than 35% of all U.S. imports of refined petroleum products, with Canada on top all but four years this century.

Through February, Canada accounted for 21.76 of U.S. refined petroleum imports while Russia accounted for 19.34%.