The Middle East region is rapidly becoming a major supplier of industrial fuels to Europe and Africa, while adding stocks to Asia, as Russian imports added to an increase in refinery production in the region.
Rising Middle East exports to Europe and Africa are effectively driving Asian diesel exporters out of those markets, adding pressure to prices and refining margins in the east, which are already hovering near their lowest levels in more than a year.
A Reuters analysis revealed that ship tracking data from Refinitiv, Kepler and Vortexa showed that no less than 500,000 tons of fuel were unloaded in the region during March, compared to almost no Russian fuel shipments a year ago, as the Middle East accounted for just over ten percent of exports. Russian uploaded in February-March.
The European Union banned imports of Russian crude and then oil products in December and February respectively, forcing Moscow to redirect shipments to other regions.
Restrictions imposed on Western companies providing insurance and ship services to Russia made the task of selling Russian oil more difficult, and traders preferred to store oil in centers in the Middle East before re-exporting it.
exports
Data from Refinitiv showed that monthly diesel exports from the Middle East to Northwest Europe averaged over one million tons in the first quarter of 2023, up from 785,000 tons per month in the last quarter of 2022.
The data also showed that March loading shipments exported to Africa reached a four-month high of 2.57 million tons, up from a monthly average of nearly 1.3 million tons in 2022. Quantities to Asia also hit a new high for March.
Energy Aspects analysts said Middle East exports to Asia rose to 150,000 barrels per day in March, making up for some of the void left by slowing Chinese exports.
Wood Mackenzie analysts told clients in a note that increased supply could impact global refining margins, which could reach $6.60 a barrel in the fourth quarter, down from an average of $11 in the same quarter of 2022.
#Record #flows #Russian #diesel #Middle #East #boost #exports #Europe #Africa