Daily “Today in Energy” updates from reveal how Strait of Hormuz Closures are reducing global trade.
The U.S. Energy Information Administration (EIA) produces daily “Today in Energy” briefs, covering trade, pricing, supplies, and more across all energy sectors. Several recent analyses have focused on crude imports and pricing, issues that may directly affect the U.S. energy markets.
July 31, 2026: China’s crude oil imports fell in the second quarter
China, the world’s largest importer of crude oil, imported less crude oil in the second quarter of 2026 (2Q26) following higher crude oil prices that resulted from disrupted flows through the Strait of Hormuz. China’s lower imports reduced global demand, softening the upward price effects from the disrupted supply through the strait.
Monthly data from China’s General Administration of Customs indicate that China imported just 8.1 million barrels per day (b/d) of crude oil in 2Q26, 32 percent less than the previous quarter. In May and June, imports fell below 8.0 million b/d for the first time since 2016.
China’s recent decrease in crude oil imports contrasts with record-high imports before the conflict around the Strait of Hormuz. China imported an annual record of 11.6 million b/d of crude oil in 2025, expanding its strategic oil stocks at a time when crude oil prices were the lowest since 2020. In 2H25, when crude oil prices were lowest, China imported an average of 12.0 million b/d, a level sustained through February 2026.
Most crude oil imports into China arrive by tanker, and tanker traffic data from Vortexa suggest the decrease in imports was from waterborne movements rather than pipeline imports, which we estimate remained stable. The largest decreases in waterborne imports between 1Q26 and 2Q26 were from Iraq (910,000 b/d), Russia—China’s top source of imports—(640,000 b/d), and the UAE (600,000 b/d).
China reduced its imports of crude oil more than refiners reduced processing crude oil, suggesting crude oil inventory draws. China’s refineries processed 2.2 million b/d less crude oil in 2Q26 than in 1Q26, compared with a 3.9 million b/d drop in imports.
July 29, 2026: Lower crude oil prices reduced U.S.-Canada energy trade value in 2025
The value of energy trade between the United States and Canada fell by 11 percent in 2025 to an estimated $137 billion, according to data from the U.S. Census Bureau. Most of the U.S.-Canada trade value is U.S. energy imports from Canada—$111 billion in 2025—rather than from U.S. energy exports to Canada, which totaled $26 billion last year. Crude oil accounts for the largest component of U.S.-Canada energy trade, making up 69 percent of the total value traded in 2025.
As of March 6, 2025, Canada’s energy exports to the United States are subject to a 10 percent tariff, although some crude oil volumes are potentially exempt from tariffs if they qualify for the United States-Mexico-Canada Agreement preference. More recent tariff actions announced by the White House exempt energy trade.
Despite the imposition of the 10 percent tariff last year, the United States remained the largest export destination for Canada’s crude oil given the existing pipeline infrastructure connecting the two markets. Relatively complex U.S. petroleum refineries tend to prefer heavy crude oils, such as those produced in Canada.
Crude oil. Lower crude oil prices in addition to lower trade volumes resulted in the value of crude oil trade between the United States and Canada averaging $94.7 billion, 16 percent less than in 2024.
Canada is a key source of U.S. crude oil imports, and it remained the primary source of U.S. crude oil imports in 2025. U.S. crude oil imports from Canada in 2025 averaged 3.9 million barrels per day (b/d), 4 percent less than in 2024, partly due to increased utilization in Canada of the Trans Mountain Expansion (TMX) pipeline, which brings Canadian crude oil to the Pacific Coast for export to foreign markets.
Petroleum products. Petroleum products trade between the United States and Canada increased by about 2 percent by volume in 2025 but decreased by about 4 percent by value, driven by lower fuel prices. Crude oil prices make up the largest component of gasoline and diesel fuel prices.
In 2025, the United States imported 583,000 b/d of petroleum products from Canada, a 2 percent decrease. Lower fuel prices and lower import volumes resulted in $16 billion of petroleum imports from Canada in 2025, 15 percent lower than in 2024. Meanwhile, U.S. petroleum product exports to Canada in 2025 averaged 504,000 b/d, 6 percent higher than in 2024. Similarly, the value of U.S. petroleum product exports to Canada in 2025 was 12 percent less than in 2024 at $13.4 billion.
July 15, 2026: Petroleum markets responded to disruptions in the Middle East in the second quarter
Petroleum markets in the second quarter of 2026 (2Q26) were characterized by continued disruptions to international crude oil and petroleum product flows through the Strait of Hormuz, contributing to higher and more volatile crude oil prices through most of the quarter. The disruptions also resulted in international buyers seeking alternative supply sources for petroleum products, driving up U.S. refinery margins, production, and exports.
Crude oil prices and inventories
The front-month futures price of Brent crude oil traded in a wide range in 2Q26, reaching a high of $118 per barrel (b) on April 29 and falling to a low of $72/b on June 26.
The price of Brent crude oil began the quarter above $100/b, as disruptions to international crude oil flows through the Strait of Hormuz reduced access to crude oil for much of the world and led many countries in the Middle East to shut in crude oil production. Uncertainty around reopening the Strait of Hormuz to shipping traffic contributed to highly volatile prices in April and May, with an average daily price swing of $4/b in the Brent crude oil price, compared with $1/b in the same months in 2025. From May 18 to June 17, negotiated ceasefires and growing market anticipation for the resumption of shipping traffic through the Strait of Hormuz led the Brent crude oil price to decline by an average of more than $1/b per day (d). On June 17, the United States and Iran signed a Memorandum of Understanding (MOU) that, among other things, sought to resume traffic through the Strait of Hormuz. Following the signing of the MOU and an increase in crude oil tanker movements through the strait, Brent crude oil prices generally declined in the remainder of the quarter. In the first two weeks of the third quarter, prices increased following renewed military strikes and uncertainty over the agreement.
Crude oil prices declined in the second half of the quarter despite large global crude oil inventory draws. Record crude oil exports and high refinery runs were key drivers behind U.S. inventory drawdowns.
Refinery margins
U.S. refineries ran at unseasonally high levels in 2Q26, processing the most crude oil for the quarter since 2019, when refining capacity was 4 percent higher. High refinery inputs reflected strong margins for transportation fuels. Motor gasoline, distillate, and jet fuel crack spreads—measures of the refinery margins for these fuels—were all elevated, with the quarterly average gasoline crack spread up 60 percent from the year-ago level, and the distillate and jet fuel crack spreads more than double their year-ago levels as a result of tight international supply.
Petroleum product exports
U.S. distillate and jet fuel exports reached record highs in the second quarter as disruptions to supplies through the Strait of Hormuz also tightened global refined product markets. We estimate 2Q26 distillate exports averaged 1.56 million b/d, 30 percent higher than the five-year average, and jet fuel exports averaged 356,000 b/d, more than double the five-year average. Jet fuel exports increased substantially to Europe, while remaining about the same to most other destinations.
Higher global demand to replace lost jet fuel volumes led some refiners to shift their refinery yield to maximize jet fuel output for exports. Refiners can adjust product yields in response to changing market conditions by varying refinery processes and the types of crude oil they refine. In the United States, refineries typically optimize production for motor gasoline to meet domestic demand. In 2Q26, we estimate jet fuel production was 24 percent higher than the five-year average because of higher refinery runs and higher jet fuel yields. Distillate production was 5 percent higher and motor gasoline production was only 1 percent higher over the same period.
