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EIA: U.S. fuel markets still rely on imports

Market fluidity hinged to domestic interconnectivity.

By Daniel J. Graeber

WASHINGTON, Sept. 5 (UPI) -- Some markets in the United States still rely heavily on imports to meet regional demand for petroleum products, the U.S. Energy Department said.

The U.S. Energy Information Administration said exports of U.S. gasoline, jet fuel and other petroleum products averaged 3.7 million barrels per day in June, the last full month for which data are available. EIA said increased exports from the Gulf Coast accounted for 72 percent of all growth in the U.S. petroleum export market.

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"Despite higher total U.S petroleum product exports, the East Coast remains reliant on imports to meet regional demand for both gasoline and distillate [diesel and other fuel oils]," EIA said in a weekly report published Thursday.

EIA said the East Coast market receives much of its fuel from domestic sources, though pipeline and maritime shipping constraints limit how much of the petroleum products refined elsewhere in the United States can reach the region.

EIA says trade in petroleum products varies depending on supply and demand.

"With U.S. refining capacity in the Gulf Coast far bigger than required to meet regional demand, the Gulf Coast will continue to supply product to other U.S. regions as infrastructure allows, and to the global market as supported by market conditions," it said.

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