US fuel oil production is projected to decrease this month following a significant decline last week, marking the largest drop since February 2022, according to data from the Energy Information Administration (EIA), as reported by Hellenic Shipping.
Changes in monthly US residual fuel oil from April to May (so far):
• Production down 19,000 b/d to 283,000 b/d
• Supply up 70,000 b/d to 238,000 b/d
• Imports up 21,000 b/d to 110,000 b/d
US fuel oil production has witnessed a decline, primarily led by Gulf Coast and East Coast refiners producing 15% and 9% less fuel oil, respectively. In contrast, West Coast and Midwest refiners have produced 8% and 16% more. Refinery utilization has averaged 92% this month, one percentage point higher than in April. Fuel oil supply from storage has increased, with implied demand surging from 168,000 b/d in April to 238,000 b/d this month. US fuel oil stocks have surpassed 30 million barrels, remaining above this threshold for five consecutive months. East Coast and Midwest stocks have grown by 7%, while West Coast stocks have declined by 3%.
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Source: Hellenic Shipping