Thursday 21 Nov
Europe is gearing up for a significant influx of diesel imports this month, as shipments from both the United States and Saudi Arabia converge. The increased supply comes amidst a backdrop of irregular demand within the European market, with countries like Germany, France, Spain, Italy, and the United Kingdom reporting fluctuations.
According to preliminary data
from Vortexa, diesel and gasoil imports into the European Union and the United
Kingdom are projected to reach approximately 1.28 million barrels per day in
the first half of October. This marks a substantial increase and could
potentially surpass the highest average flow recorded since February 2023 when
the EU imposed a ban on Russian fuel imports in response to the war in Ukraine.
The surge in supplies from the
Gulf Coast is primarily attributed to a decline in fuel demand within the US
markets. Additionally, the availability of numerous tankers has contributed to
the profitability of transporting fuel to Europe.
The diesel premium over crude
oil, a key indicator for traders and refiners, has currently settled at around
$16 per barrel, a significant decrease from its February levels.
Europe's imports from the United States are anticipated to reach approximately 417,000 barrels per day during the first half of October, representing the highest level since the beginning of 2016. Meanwhile, imports from Saudi Arabia are expected to soar to 370,000 barrels per day, marking a four-year high.
