Fuel oil imports at the U.S. Gulf Coast surged to ~541,000 barrels per day, marking a 2.5-year high, as penalized heavy crude supplies from Venezuela and Russia strain domestic feed choices. With U.S. crude imports falling to roughly 880,000 bpd—the lowest since late 2022—refiners are increasingly turning to imported fuel oil to bridge the heavy-crude deficit.
This pivot increases logistics and blending complexity, as imported fuel oil often requires additional upgrading or additive treatment to meet local product specs. Gulf Coast units built for heavier feedstocks are better positioned, but margins compress when marine freight, duty, or quality adjustments rise. The surge underscores how global sanctions and crude routing shifts are directly altering feedstock portfolios for major refining hubs.