US fuel production declines in August

The US has produced 5% less fuel oil per day on average in August thus far compared to July, according to the Energy Information Administration (EIA).

Changes in monthly US residual fuel oil from July to August (thus far):

• Production down 14,000 b/d to 290,000 b/d
• Supply down 89,000 b/d to 224,000 b/d
• Imports down 10,000 b/d to 145,000 b/d

Volumes of fuel oil supplied out of US storage tanks has decreased in August so far. 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 decreased from 313,000 b/d in July to 224,000 b/d this month so far, the EIA reports.

US refineries have produced 14,000 b/d less fuel oil in August thus far, while imports have decreased by 10,000 b/d.

Total US fuel oil stocks have decreased by 1.35 million bbls on the month to 22.73 million bbls.

By Gautamee Hazarika

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