US Gulf Coast fuel oil imports hit five-year low as domestic supplies soar

Imports of fuel oil bound for the U.S. Gulf Coast fell to a five-year low last month as refiners ran more cheap, heavy Canadian crude and geopolitical tensions in the Middle East pressured fuel oil flows.

Fuel oil deliveries to the Gulf Coast dwindled in February to just 318,000 barrels per day (bpd), a 20% drop from the prior month and marking their lowest level since February 2019, data from tanker tracking firm, Kpler showed.

Heavy fuel oil feedstocks like high sulfur fuel oil and other heavy residues are used to make higher value products like gasoline and diesel.