U.S. East Coast essence fuel oil inventories aloft than in new years

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Inventories of essence fuel oil in a U.S. East Coast are aloft now than they have been in a prior 3 years, reaching 59 million barrels on Sep 18. Most of a new boost is in a Central Atlantic region, though inventories are also aloft in New England and in a Lower Atlantic, compared with prior late-September levels.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Heating oil, a form of essence fuel oil, is used as a space heating or H2O heating fuel in about 8 million U.S. households, roughly all of that are in a Northeast. In a Northeast, 27% of households use heating oil for space heating, while national usually 6% of households use heating oil, formed on information from EIA’s latest Residential Energy Consumption Survey.

The East Coast segment (Petroleum Administration for Defense District, or PADD 1) generally binds about 30% to 50% of a nation’s essence fuel oil inventory. These register levels vacillate seasonally, typically sketch down in winter months and building adult in summer months.

In a past 3 years, East Coast inventories had been comparatively low compared to a prior five-year average, reflecting a long-term decrease in heating oil direct and a augmenting accessibility of alien supply from a tellurian market. Recently, a multiple of increasing shipments from a Gulf Coast, aloft refinery runs, and imports have increased East Coast essence inventories to 5.4 million barrels above a five-year normal for a week finale Sep 11, a top given 2011.

Before final winter, 5 other states assimilated New York in implementing stricter sulfur boundary on home heating oil, contributing serve to changes in a form of essence fuel oil hold in Northeast inventories. Historically, essence fuel oil with a sulfur calm larger than 500 tools per million (ppm) done adult 60%–70% of inventories in a Central Atlantic segment (PADD 1B).

As stricter sulfur boundary were enacted and a New York Mercantile Exchange (Nymex) altered to a reduce sulfur selection contract, a sulfur calm of inventories also declined. Currently 80% of PADD 1B inventories have a sulfur calm of 15 ppm or lower.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

In addition, new regulations that extent sea fuel sulfur levels in certain coastal waters to 1,000 ppm began in Jan 2015. To comply, sea vessels are switching to lower-sulfur essence fuel, installing emissions controls and other options, though a outcome on essence fuel direct is comparatively small.

Beginning Oct 7, EIA will resume a anniversary Heating Oil and Propane Update news of sell and indiscriminate heating oil prices. Last year, a information collection was stretched to embody heating oil information for 22 states.

Source: EIA