Houston — US stocks of low sulfur heating oil reached their highest level since March, while inventories of high sulfur heating oil rose to their largest volume since May, Energy Information Administration data showed Wednesday.
Nationwide stocks for LSHO, distillate with between 15 ppm and 500 ppm sulfur content, increased 15.11%, or 698,000 barrels, to 5.32 million barrels during the week ended on August 17. It was its highest level since 5.61 million barrels on the week ended March 9.
They were supported by a 27.64% increase on the Gulf Coast, where inventories gained 330,000 barrels to 1.52 million barrels.
On the Atlantic Coast, the advance was not as large at 12.10%, or 334,000 barrels, but stocks in the region reached 3.1 million barrels, their highest volume since the week ended March 16.
US production of LSHO rose 6.87% to 140,000 b/d, aided by an increase of 4.72% on the Gulf Coast, where most of the grade is produced, to 111,000 b/d.
Regarding stocks for distillate with sulfur content greater than 500 ppm, the data show a second week of slight strengthening.
Nationwide stocks gained 206,000 barrels last week to 8.61 million barrels, and advance of 2.45% that followed another increase, of 3.61%, on the week ended on August 17. It is its highest volume since the week ended May 18, when US HSHO inventories totaled 9.41 million barrels.
Gulf Coast stocks increased 4.67%, or 197,000 barrels, to 4.42 million barrels, its highest level since the week ended June 8, when they totaled 4.56 million barrels.
However, on the East Coast, inventories fell for second consecutive week, losing 71,000 barrels, or 2.40%, to 2.89 million barrels.
Production of HSHO in the US increased 32.39% last week, to 232,000 b/d. As with LSHO, most of the production of HSHO comes from the Gulf Coast, where it rose 27.88% to 211,000 b/d.
Differentials for high sulfur heating oil prices on the Gulf Coast earlier this week reached their highest level since February 2016, amid what market participants have said is higher demand for exports and stocks still at low historic levels. S&P Global Platts assessed Gulf Coast HSHO on Tuesday, the first day of Colonial Pipeline's 48th cycle, at NYMEX September ULSD minus 13.25 cents/gal.
