Atlantic oil is more appealing to Asian buyers as spread narrows
Shipping Iraqi high-sulfur fuel oil to the U.S. Gulf Coast on Suezmax tankers has been economically viable since early July, according to Sparta commodity owner Hoa Nguyen, referring to tankers that can ship up to a million barrels.The end of the power generation season in the Middle East has also freed up more high-sulfur residual fuel oil barrels to meet strong demand on the U.S. Gulf Coast, Nguyen added.“In short, there is way more availability of high-sulfur residuals right now, which the U.S. refining system is hungry for and which will help boost the diesel yield there,” Nguyen said.
Reuters, October 2, 2025 –
U.S. Gulf Coast refiners boosted fuel oil imports to a 2.5-year high in September as sanctions cut Venezuelan and Russian crude. Rising flows from Saudi Arabia, Iraq, and Kuwait are filling the gap, with refiners turning residual barrels into diesel and gasoline. This shift is tightening global fuel oil balances and reshaping arbitrage economics.
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