The United States supplied 11% less fuel oil per day on average in July compared to June, according to the latest data from the Energy Information Administration (EIA). The EIA, a statistical agency within the US Department of Energy, tracks energy production, consumption, and inventory data on a regular basis.

Supply — a metric that can also serve as an indicator of demand — fell from 353,000 barrels per day (b/d) in June to 313,000 b/d in July, a decline of 39,000 b/d.

Residual fuel oil is the heavier, lower-value product remaining after the distillation and cracking processes at refineries. It is directed to several downstream outlets, including bunker fuel blenders and bulk terminals, refinery coking units where it can be upgraded into higher-value products, and power generation facilities. Residual fuel oil remains a key fuel for maritime shipping and is still used for power generation in certain US regions and territories, meaning shifts in its supply and demand patterns can reflect broader trends in shipping activity and energy markets.

June-to-July Changes in US Residual Fuel Oil

The EIA reported the following month-over-month changes:

• Production: Up 1,000 b/d to 304,000 b/d
• Supply: Down 39,000 b/d to 313,000 b/d
• Imports: Up 43,000 b/d to 155,000 b/d

US refineries produced 1,000 b/d more fuel oil in July compared with June, while imports saw a notable increase of 43,000 b/d.

Total US fuel oil stocks decreased by 360,000 barrels on the month, falling to 21.38 million barrels. The combination of rising imports, a modest production increase, and a stock draw alongside falling supply suggests that available residual fuel oil moved through the system at a different pace than in June.

Source: By Gautamee Hazarika, ENGINE,