The United States is on track to ship more diesel to Europe this month, with Europe’s diesel imports from Asia and the Middle East falling so far this month.
While Europe’s desire to wean itself completely off Russian fuel supplies, Europe’s appetite for imported diesel and gasoil hasn’t diminished. In fact, it is estimated that it will increase this month to 290,000 bpd, preliminary estimates from Kpler and compiled by Bloomberg show. This is the highest level of diesel and gasoil imports since July of 2018.
U.S. Gulf Coast exports of diesel spiked as soon as refinery maintenance season was complete. But Panama Canal bottlenecks created a chokepoint for US exports of diesel to Latin America—opening the door for exports to Europe, who has been on the lookout for additional supplies.
“Increased supply due to USGC refineries’ exit from the autumn maintenance season is being offset by resilient domestic demand and high export demand to Europe and Latin America,” Kpler’s report said.
Asia and the Middle East, another supplier of diesel and gasoil to Europe, has seen a downswing as they perform refinery maintenance. Europe’s maintenance season is also about to end. Weaker demand in Europe and the comeback of refineries at home should boost supplies in Europe, Kpler said in its report, but it expects them to remain tighter than normal in December.
Europe’s imports of diesel from India were on track to reach 305,000 barrels per day, Kpler data showed—the highest point since January 2017. Europe has found itself the subject of criticism with its purchases of diesel from India, with India purchasing cheap crude oil from Russia.
Last year at this time, Russia was Europe’s top supplier of diesel.
By Julianne Geiger for Oilprice.com
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