Residual fuel oil is a by-product of the crude oil distillation process. Residual fuel oil is primarily used as a burner fuel in numerous industrial and commercial business applications, including the utility industry, the shipping and paper industry, steel mills, tire manufacturing, schools and food processors.

The residual fuel oil industry in the United States is characterized by a high degree of seasonality with much of the seasonality driven by the impact of weather on the need to produce power for heating and cooling.

The residual fuel oil market is largely a commodity market with price functioning as the primary decision-making criterion. Many customers, however, have unique product specifications that require the blending of various components to meet those specifications.

Residual fuel oil is purchased from a variety of refiners by our customers and transported to Blueknight Energy Partners’ terminalling and storage facilities. The residual fuel oil is transported via numerous methods, including rail tank car, barge, ship and truck.