US residual fuel oil imports up 35pc

US residual fuel oil imports increased by 35pc to 498,033 b/d in the first four months of 2018 compared with the same period in 2017. The increase came amid higher demand for straight-run fuel oil for refinery feedstock in the US Gulf, as well as lower US east coast fuel oil refinery production and steady demand for bunkering.

US east coast residual fuel oil production was down by 1,250 b/d or 3pc to 42,500 b/d in the first four months of this year as a result drop in east coast refinery crude runs. Venezuelan fuel oil exports to the US nearly doubled to 50,151 b/d in the first four months of the year. Of the Venezuelan resid, 42,916 b/d, was 1pc sulphur minimum cracked fuel oil which was imported by Phillips66 into Newark, New Jersey for sale into the New York Harbor bunker market. Canada was the top exporter of cracked residual fuel oil to the US – 59,076 b/d in the first four months of the year. Imports from Canada rose by 41pc compared with the same period in 2017. Most of Canada's resid barrels found home in the US northeast – total of 36,252 b/d were imported into New Jersey, New York and Pennsylvania for bunkering. The biggest importers of Canadian resid were Shell and Glencore.

US saw an uptick in straight run fuel oil imports for refinery feedstock in January through April. Russia exported the most straight-run fuel oil to the US - 155,723 b/d, a 71pc increase. The bulk of the Russian straight-run fuel oil was imported by Valero to Gramercy, Louisiana (71,504 b/d), by ExxonMobil to Houston (33,176 b/d), Texas and by BP to Bellingham, Washington (24,462 b/d). The second biggest exporter of straight-run fuel oil to the US was the UAE, a distant second to Russia with 10,874 b/d, which BP imported to Bellingham.