The Middle East threatens Russia’s dominance of the diesel market in Europe

The Middle East threatens Russia’s dominance of the diesel market in Europe
The Middle East threatens Russia’s dominance of the diesel market in Europe

Highest since 2019

Shipments from the Middle East to the continent are estimated in September at about 509,000 barrels per day, the highest since at least the beginning of 2019, according to tanker tracking data and “Fortexa” data collected by “Bloomberg”.

Strong shipments from the Middle East are helping Europe cope with the impact of declining Russian flows at a time when the continent urgently needs to refill stocks, and Leach says refinery maintenance in the fall is already limiting diesel supplies in Europe, and has reduced seasonal maintenance in the United States and India. Exports to the continent further boosted demand for Middle Eastern supplies.

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Meanwhile, stocks of diesel and gasoline in independent warehouses in the European center of “Amsterdam-Rotterdam-Antwerp” are at their lowest seasonal levels since at least 2008, according to data “Insights Global”.

Leach says some European refineries are facing difficult economic arithmetic as they struggle to secure cheap supplies to replace imports of Russia’s leading Urals crude, as well as soaring prices for natural gas used for processing.

“In contrast, Middle East refineries lie on ample stocks of local crude and cheap refinery fuel,” he added.

The article is in Arabic

Tags: Middle East threatens Russias dominance diesel market Europe

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