Changes in monthly US residual fuel oil from August to September:

• Supply up 34,000 b/d to 294,000 b/d
• Production down 24,000 at 279,000 b/d
• Imports up 21,000 b/d to 107,000 b/d

Fuel oil production in the US dropped from 303,000 b/d in August to 279,000 b/d last month. Gulf Coast refineries reduced production by 26%, while East Coast refineries produced 23% less fuel oil. Production dropped to its lowest since December 2023.

“Hurricane Helene weighed on refinery activity at the Gulf Coast,” UBS analyst Giovanni Staunovo told ENGINE.

More fuel oil was supplied from the US storage tanks to outlets like bunker fuel blenders and bulk terminals, refinery coking units for upgrades to higher-value products, or to power generation last month. Supply, or implied demand, increased from an average of 260,000 b/d across August to 294,000 b/d last month.

Total US fuel oil stocks dropped by 928,000 bbls from August to 25.38 million bbls in September. On the Gulf Coast, fuel oil stocks dropped by 7% to 15.01 million bbls.

Changes in monthly average US residual fuel oil from August to September:

• Total US stocks down 928,000 bbls to 25.38 million bbls
• Gulf Coast stocks down 1.14 million bbls to 15.01 million bbls
• East Coast stocks up 74,000 bbls to 4.89 million bbls
• West Coast stocks up 59,000 bbls to 4.29 million bbls

US fuel oil imports averaged 24% higher in September than in August. Imports rose from 86,000 b/d in August to 107,000 b/d in September.

Mexico continued to be the US’ biggest fuel oil import source in September, accounting for 33% of the US total imports, followed by the Bahamas (18%), according to data from cargo tracker Vortexa.

The country’s fuel oil exports also rose from 151,000 b/d in August to 186,000 b/d in September, Vortexa data shows. The majority of these exports departed for Singapore, which received 40% of the US shipments.
Source: Engine