There is disclosed a fuel composition comprising (a) a major amount of a middle distillate fuel comprising from about 0.5% to about 30% by weight fatty acid methyl esters, relative to the total amount of the fuel composition; and (b) a minor amount of an additive composition comprising an antioxidant system comprising at least one cyclic amine antioxidant and at least one phenolic antioxidant, and at least one ashless dispersant, wherein said fuel composition demonstrates reduced sediment formation as compared to a fuel composition devoid of the additive composition, and methods of use thereof.