The ban on Russian diesel in Europe has led to its glut in Asia
Diesel stockpiles held in Asia have increased since the EU's ban on imports of Russian diesel took effect on February 5, with Asian refiners now having to compete with Russia for diesel sales in Africa. industry insiders told Reuters . Practically the scarcity in Europe corresponds to an excess in Asia and the Middle East…
Prior to the EU ban on Russian petroleum products, Russia began diverting its cargoes of petroleum products to North Africa and Asia. At the same time, Europe has begun buying more diesel and other fuels from the Middle East, Asia and North America to replace lost Russian barrels.
Weekly diesel inventories at the Singapore hub hit their highest level in more than a year last week as Russia sells more diesel to Africa, displacing supplies from the east, according to Reuters estimates. of Suez.
According to analysts, the diesel shortage in Asia is not expected to last more than a few months, as demand in the second half of the year is set to increase.
Russia is said to be ramping up diesel exports to Saudi Arabia with both direct shipments and ship-to-ship transfers, Reuters reported earlier this month, citing trade sources and Refinitiv shipping data.
Using STS cargoes, Russia is shortening tanker routes to Africa and Asia after Moscow was banned from exporting fuel to the EU.
At the same time, Europe is ramping up imports of diesel from the Middle East and Asia to compensate for the loss of Russian barrels, of which it imported about 600,000 barrels per day (bpd) before the embargo went into effect on 5 February. Probably many of these imports are nothing more than Russian diesel lightly processed or reblended with diesel from other sources.
In March, shipments of Russian diesel increased by 400,000 bpd from February, reaching "an extraordinarily high level" of 1.5 million bpd, Jay Maroo, lead analyst at Vortexa, said in an analysis this week.
“At least in the short term, supplies appear ample and demand could be threatened, especially in the case of diesel, by worries of an impending recession,” Maroo noted.
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The article The ban on Russian diesel in Europe has led to its glut in Asia comes from Scenari Economics .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-bando-del-gasolio-russo-in-europa-ha-portato-al-suo-eccesso-in-asia/ on Thu, 23 Mar 2023 19:42:45 +0000.