Fuel oil shipments into America's biggest refining hub on the U.S. Gulf Coast was up to a. record low in December, according to information from ship tracker. Kpler, as Latin American materials dried up.

WHY IT is very important

The drop in fuel oil imports comes as residual fuel oil. stocks on the U.S. Gulf Coast averaged just 14.2 million barrels. last month, their least expensive December average given that 2002, according. to an analysis of information from the Energy Information. Administration (EIA).

CONTEXT

Feedstocks like high sulfur fuel oil and other heavy. residues can be improved into higher worth items such as. gasoline and diesel utilizing secondary crude systems.

The four-week average refinery usage rate on the U.S. Gulf Coast was at 94.9% in the week to Dec. 27, according to the. EIA, up from 92.5% on the year.

However, fuel oil flows from key-supplier Mexico fell in. December to 92,000 barrels each day (bpd), marking a second. straight month of decline. The new Olmeca refinery, owned by. Mexican state energy business Pemex, was only working. at nearly 17% of its 340,000 bpd capacity in November.

KEY QUOTES

( The drop in fuel oil imports) looks supply-driven offered. that refinery usage was strong on the U.S. Gulf last. month, said Matt Smith, an expert at Kpler.

Deliveries from Latin America dropped to their most affordable in. three-and-a-half years, driven by Mexico, which has actually been dealing. with a number of refinery concerns, Smith included.

BY THE NUMBERS

Fuel oil imports releasing along the U.S. Gulf Coast. slipped to 222,000 bpd last month, a near-third decrease on the. month and marking the tiniest volumes provided since a minimum of. January 2017, when Kpler began looking at the information.

Deliveries from Latin American countries slipped to 115,000. bpd in December, below 135,000 bpd in November and their. most affordable level considering that June 2021.

Colombian fuel oil headed to the Caribbean and the. Netherlands instead of the U.S. Gulf Coast, Kpler's Smith. pointed out, while barrels from Middle Eastern suppliers such as. Iraq and Kuwait were pulled east of the Suez Canal.

(source: Reuters)