Diesel for Europe? Now it comes from the Middle East
Some of the largest crude oil exporters in the Middle East are significantly increasing their exports of diesel fuel to Europe , which is looking for fuel in the midst of a massive crisis after Russia invades Ukraine.
The diesel crisis in Europe due to sanctions on Russia has disrupted the oil product markets globally. Profit margins from diesel refining have quadrupled since the start of the year as major diesel buyers shun all energy products from Russia or expect some sort of Russian oil embargo.
In a very tight market for spirits, Middle Eastern crude oil producers are increasing diesel exports, which would alleviate the crisis and compensate for the loss of supply from Russia.
Volumes of diesel from the Middle East to Europe in April are expected to more than double to 379,000 barrels per day (bpd), offsetting an expected loss of 166,000 bpd of Russian diesel supply, according to compiled cargo schedules and tanker tracking data. by Bloomberg. According to Bloomberg estimates, Arab Gulf diesel exports to Europe are set this month for their highest level since October 2020.
Russia is expected to still be Europe's leading diesel supplier in April, with over 600,000 barrels per day. Yet sanctions, or self-sanctions, and the threat of an embargo could further reduce Russian supply, exacerbating the diesel crisis in Europe.
Diesel exports from Primorsk, Russia's main port for fuel shipments on the Baltic Sea, are likely to plummet by as much as 30% in May, according to a cargo plan shown by Bloomberg on Thursday.
Meanwhile, Europe risks being exposed to a "systemic" diesel supply deficit that could worsen and even lead to fuel rationing, top executives of the world's largest independent oil traders said last month. Global diesel stocks were already low even before the Russian invasion of Ukraine, but the shortage has now been exacerbated by the reduced global supply of diesel from Russia.
According to Russell Hardy, CEO of the world's largest independent trader, Vitol, "The thing that worries everyone is diesel fuel supplies." And everyone is willing to do almost anything to get them. Diesel is used for any type of heavy transport, so it is necessary for the economy. Without forgetting that the tanks run on diesel fuel …
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The article Diesel fuel for Europe? Now it comes from the Middle East and comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gasolio-per-leuropa-ora-viene-dal-medio-oriente/ on Fri, 29 Apr 2022 09:00:45 +0000.