US fuel oil supply rises to highest level in more than three years
US fuel oil production averaged 6% higher in December than in November, according to the Energy Information Administration (EIA).
Changes in monthly US residual fuel oil from November to December:
- Production up 17,000 b/d to 323,000 b/d
- Supply up 183,000 b/d to 422,000 b/d
- Imports up 113,000 b/d to 221,000 b/d
Volumes of fuel oil supplied out of US storage tanks increased in December. The fuel oil goes to outlets like bunker fuel blenders and bulk terminals, refinery coking units for upgrades to higher-value products, or to power generation.
Supply, which can also imply demand, has increased from 239,000 b/d in November to 422,000 b/d in December.
This marks the highest supply level in more than three years; the last time supply was higher was in May 2022, when it reached 431,000 b/d.
US refineries produced 17,000 b/d more fuel oil in December, while imports increased by 113,000 b/d.
Total US fuel oil stocks decreased by 604,000 bbls on the month to 22.46 million bbls.
By Gautamee Hazarika
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