Russian straight-run fuel oil supply collapse complicates Gulf Coast feedstock choices
In the next couple of years, collapsing Russian supply of straight-run fuel oil (SRFO) will undermine foreign supply of feedstock to the US Gulf Coast.
In the next couple of years, collapsing Russian supply of straight-run fuel oil (SRFO) will undermine foreign supply of feedstock to the Gulf Coast. Gulf Coast refiners currently rely more than ever on imports of vacuum gas oil (VGO) and SRFO to feed their cracking units. Russias refineries have developed into the top source of this feedstock, thanks to an oil export duty regime that encouraged the production and export of feedstock. That is changing, though, due to new export duties imposed by the Russian government.
Reduced feedstock supply adds another layer of complexity to the feedstock choices confronting Gulf Coast refiners. Until now, Gulf Coast refiners have compensated for i
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