Data from the Energy Information Administration (EIA) show that US fuel oil inventories were 1% lower this month than in February.
Changes in monthly average US residual fuel oil from February to March (so far):
- Total US inventories fell 325,000 bbl to 30.81 million bbl
- Gulf Coast storage 190,000 bbl to 19.15 million bbl
- East Coast inventories fell 713,000 bbl to 5.28 million bbl
- West Coast stores 169,000 bbl to 5.07 million bbl
Much less fuel oil has been supplied out of storage to outlets such as bunker fuel blends and bulk terminals, to refinery coking units to upgrade other higher value products or to generate power. Supply, or implied demand, has more than halved from 361,000 b/d in February to just 132,000 b/d this month, the lowest since October 2015.
Total US fuel oil inventories have declined despite less fuel oil being supplied. East Coast stocks are down 12% for the month. While the Gulf Coast and West Coast have gained 1% and 3%, respectively. Gulf Coast stocks are at their most voluminous level since June 2020.
U.S. fuel oil production fell 3% this month. East and West Coast refineries produced 21% and 12% less fuel oil this month. Gulf Coast output rose 4% to its highest level since August 2019.
Overall US refinery utilization has averaged around 88% this month, up from 87% in February. Meanwhile, Gulf Coast refinery utilization averaged 91% this month, up from 87% in February and a low of 65% in January.
Senior refineries on the Gulf Coast have produced more residual fuel oil as a byproduct.
Changes in monthly US residual fuel oil from February to March (so far):
- Supply down 229,000 b/d to 132,000 b/d
- Production fell 9,000 b/d to 249,000 b/d
- Imports down 85,000 b/d to 102,000 b/d
US fuel oil imports fell a massive 45% this month and saw their lowest levels since October 2019. According to cargo tracker Vortexa, about 82% of North American fuel oil imports Americans have arrived on the Gulf Coast, followed by 16% on the Gulf Coast. East Coast and 2% on the West Coast.
Mexico remains the top source of US imports, as it has been since April, Vortexa data show. Mexico’s fuel oil imports accounted for 30% of the US total in February. And that share has increased even more in March, with nearly 37% of imports coming from Mexico.
The Bahamas (13%) has become the second largest source of US fuel oil, replacing Iraq (10%) this month. Malaysia remains the third source of fuel oil, a position it has held since December.
The EIA’s fuel oil export numbers lag two months behind import numbers and other data. According to data from Vortexa, US fuel oil exports have declined for the third month in a row. About 95,000 b/d of fuel oil was exported from the US this month, down from 110,000 b/d in February and 126,000 b/d in January.
Singapore (23%) and the Caribbean Netherlands (20%) have become the top two US fuel oil export destinations. India (16%) and Canada (15%) occupy the third and fourth positions.
Source: Engine Technologies
