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Diesel West to East Shift

OIL PRODUCTS

Diesel trade flows are showing a substantial west to east shift according to Vortexa.

  • Strong arrivals of Russian diesel in Brazil are helping to boost US flows to Europe. In the Middle East, Russian diesel arrivals are freeing up domestic production for example from Saudi Arabia, leading to even higher exports.
  • Combined US and Wider Arabian Sea supplies are now too much to digest for Europe, closing the East-West arbitrage and redirecting for the first time in about ten months substantial Wider Arabian Sea flows to the Asian market according to Vortexa.
  • The chart shows selected diesel trade flows in kbd on a 28-day moving average basis.

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