US Gulf Coast production of ultra low sulfur diesel steadied last week just below the previous week's record, government statistics showed Thursday, although total US output dipped as East Coast refineries shut due to hurricane threats.
US production dropped from an all-time high of 4.1 million b/d to 3.93 million b/d, with most of the decline in the Atlantic Coast, down 127,000 b/d to 164,000 b/d, according to data from the US Energy Information Administration. The statistics are for the week ending September 2, bracketed by hurricanes Irene and Katia over Eastern seaboard.
USGC output dropped just 11,000 b/d off its record to 2.28 million b/d for the week ending September 2.
US production is still 12.5% higher than the same week last year, while the USGC output is 27% higher, EIA said. The USGC refinery run rate rose 2.4 percentage points to 94.2%, the highest level since EIA began tracking regional rates in June 2010. The US run rate, or use of refinery operational capacity, dropped slightly to 89% but remains near the highs of the last year.
ULSD differentials for USGC declined more than a half-cent to NYMEX October heating oil futures minus 1.75 cents/gal ahead of the EIA morning release, and stayed there afterward with little action, traders said.
USGC stocks rose 1.16 million barrels week-on-week to 41.1 million barrels, which is about 2% lower than the same week last year. US stocks of ULSD were relatively unchanged at 103.6 million barrels, EIA said.
US low sulfur diesel stocks built by 834,000 barrels to 11.23 million barrels, EIA said, while heating oil inventories declined 169,000 barrels to 41.9 million barrels. Jet fuel stocks were relatively unchanged at 43.9 million US barrels and 14.5 million USGC barrels, EIA said.
Production also was relatively unchanged for the other middle distillates, at 216,000 b/d for LSD, 402,000 b/d for heating oil and 1.57 million b/d for jet fuel, half in the USGC.
