Changes in monthly US residual fuel oil from May to June (so far):
• Production down 16,000 b/d to 273,000 b/d
• Supply down 59,000 b/d to 136,000 b/d
• Imports down 68,000 b/d to 22,000 b/d
Gulf Coast refiners’ fuel oil production slumped the most at the start of June to average just 93,000 b/d, a 28% decline from 129,000 b/d in May. On the other hand, West Coast and East Coast refiners have produced 14% and 7% more, respectively.

Overall refinery utilisation has averaged 96% at the start of June, up from 92% in May.

Monthly average US fuel oil supply, imports and production since January 2021

Much less fuel oil has been supplied out of storage to outlets like bunker fuel blenders and bulk terminals, to refinery coking units for upgrades to other higher-value products, or to power generation. Supply, or implied demand, fell from an average of 195,000 b/d across May, to 136,000 b/d coming into June.

Despite less implied demand, the US fuel oil stocks have averaged 1% lower on the month. The stocks have remained above 30 million bbls for the sixth-straight month. A 3% decline in Gulf Coast stocks has weighed the most on the total, while stocks grew in other regions.

Monthly average regional fuel oil stocks in the US since January 2021

Changes in monthly average US residual fuel oil from May to June (so far):
• Total US stocks down 181,000 bbls to 32.71 million bbls
• Gulf Coast stocks down 520,000 bbls to 19.56 million bbls
• East Coast stocks up 229,000 bbls to 6.95 million bbls
• West Coast stocks up 51,000 bbls to 5.03 million bbls
US fuel oil imports have averaged 22,000 b/d this month, compared to 90,000 b/d imports in May. According to cargo tracker Vortexa, all of these imports have arrived on the Gulf Coast so far this month.

Mexico (56%) remains the US’ biggest fuel oil source so far this month, followed by Brazil (36%) and the Netherlands (8%). Mexico has been the US’ biggest fuel oil import source for more than a year now.

The EIA’s fuel oil export figures lag two months behind figures for imports and other data. Going by Vortexa data, US fuel oil exports have dropped by a massive 93% on the month, to just 8,000 b/d this month.

US fuel oil exports have departed for Mexican ports this month. India held the position as the top importer of US fuel oil in the previous two months.
Source: Engine, https://engine.online/news/availability/us-fuel-oil-production-slows-coming-into-june-4bc4