US fuel production declined in May

The US has produced 7% less fuel oil per day on average in May compared to April, according to the Energy Information Administration (EIA).

Changes in monthly US residual fuel oil from April to May:

• Production down 22,000 b/d to 281,000 b/d
• Supply down 36,000 b/d to 283,000 b/d
• Imports down 57,000 b/d to 112,000 b/d

Volumes of fuel oil supplied out of US storage tanks decreased in May. 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, decreased from 319,000 b/d in April to 283,000 b/d in May, the EIA reports.

US refineries have produced 22,000 b/d less fuel oil in May, while imports have decreased by 57,000 b/d.

Total US fuel oil stocks have decreased by 1.96 million bbls on the month to 22.5 million bbls.

By Gautamee Hazarika

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