Europe Relaxed About Prompt Diesel Supply: Platts

Europe is looking relaxed about prompt diesel supplies despite disruption at Russian refineries affecting global volumes, Platts said in its oil market podcast.

• “We have expectations for an uptick of Middle Easter exports to Europe as refineries return from maintenance, so the market expects more balances to ease,” Platts said.
• Europe’s imports of US volumes hit a near seven-year high of 400k b/d in March, following the return of US refineries from maintenance.
• Stronger diesel pries in Europe have also boosted arrivals from Saudi Arabia and India. Higher freight rates after Red Sea disruption hampered these flows, but rising differentials now absorb this cost.
• There are also significant Russian diesel volumes on the water, so any supply impact globally won’t materialise until H2 April-H1 May, Platts said.
• However, upside risks remain. Further Russian outages or local unplanned refinery maintenance could leave Europe exposed during peak maintenance season.