US Gulf Coast 3%S fuel oil was assessed at $37.20/b Wednesday, the highest since $37.45/b on October 8, Platts data showed.

The June-July spread structure for USGC 3%S residual fuel oil has not been seen in a backwardation since July 3, 2015.

Working gas storage stocks totaled 2.907 Tcf in the week that ended May 27, roughly 32% above a year ago

MGO Balboa prices were assessed at $495/mt ex-wharf, the highest since November 11 when it was at $501/mt ex-wharf, S&P Global Platts data showed.

High water level in Houston Ship Channel affected loading of bunker fuel.

Trafigura and Vitol were the two biggest buyers in May.

US fuel oil stocks have increased by 4.072 million barrels since this point last year.

Through Monday, 1.71 million barrels of USGC 3%S have traded during the Platts Market on Close assessment process.

IFO 380 CST in Houston rose $6/mt to $193/mt ex-wharf on the strength of an offer by Glencore in the Platts Market on Close assessment process.

Total US stocks of ULSD fell 768,000 barrels to 138.43 million barrels in the week ended April 29, EIA data showed. US stocks are now at their lowest point since mid-February.

Most of the reason for the rising price has been due to increases in the underlying crude market.

Flooding continued in the city, and another wave of heavy rain is possible Monday night.

Stronger HSFO, front-month ICE Brent, and ULSD prices fueled the spurt.

Wednesday's $10 spread marked the first time since March 3 that MGO was not flat between New Orleans and Houston.

One USAC source said that even with the premium to USGC 3%S fuel oil, USAC freight costs make selling without a need-based reason a losing deal for the seller.

Marine gasoil continued to trade flat between the competing Houston and New Orleans markets.

USAC 1%S fuel oil has weakened to crude since December, as winter fuel oil demand for power generation has evaporated with warmer weather in the USAC.

But market still over-supplied and demand low.

The price was up $8/mt day on day.