US Atlantic Coast ULSD stocks shot up 2.506 million barrels over the past week, the second-highest rise since record-keeping began in 2004, according to Energy Information Administration data Wednesday.
USAC ULSD stocks stood at 25.568 million barrel in the week ended Friday. This comes not far from the largest stock build of 2.7 million barrels in the week ended December 14.
Stocks have grown in each of the past four weeks, totaling 8.159 million barrels. This is the largest increase over any four-week period. Since hitting a trough in mid-November, stocks have also increased by 10.639 million barrels.
Trading sources indicated that cargoes from Canada had been coming more frequently to the Atlantic Coast due to a closed arbitrage to Europe.
Atlantic Coast ULSD imports rose by 19,000 b/d, averaging 93,000 b/d in the week ended January 4.
In the four-week moving average, ULSD imports rose by 38.5% relative to the comparable period last year.
Regional production rose slightly to an average of 278,000 b/d.
Production is up more than 27% in the four-week average.
Utilization of ULSD as heating oil in New York State is a contributing factor to the stock builds, market sources said.
Atlantic Coast heating oil stocks were at 17.116 million barrels, down 441,000 barrels, in the most recent reporting week.
