Residue markets in the US have lately been characterised by sustained tightness on the back of several factors such as lower runs and higher average API gravity, which in September reached a new record high of 33.56.
While unfinished residue, which will largely represent imports of fuel oil feedstock, has been net-short for a long time already, by now also the trade of finished fuel oil volumes has seen the US turn into a net-importer.
In September, the combined inflows of these streams have netted some 410,000 b/d, a new cycle high and the highest they have been since March of 2007 (see chart in chart).
4 Dec 2020 Featured in: Americas Weekly - Issue 48
Research Highlights - Week 49
US residue tightness over Q3 did not only concern feedstocks but also finished fuel oil (see Americas Weekly – Issue 48)