European Diesel Imports Recover in July

European diesel imports rebounded in early July on increased shipments from the East of Suez and Turkey, following two months of declines according to Vortexa data compiled by Bloomberg.

• Observed arrivals of diesel and gasoil in the EU and UK rose to 1.13mbpd on 1-10 July. This compares with 1.04mbpd for the whole of June, the lowest level in three months.
• Europe has managed to replace flows of much Russian diesel by relying on more shipments from east of Egypt’s Suez Canal, along with other regions.
• Europe’s imports from the Middle East have risen to around 470kbpd for the period, up by 10% from June.
• Flows from Egypt to Europe rose to around 110kbpd in the first ten days of July.Those shipments are mainly from the Mediterranean port of Sidi Kerir, where there has been a jump in arrivals, primarily from Saudi Arabia.
• Imports from Turkey rose to 196kbpd for the period, the highest since at least the start of 2016.
• “Overall, total diesel exports from the East of Suez market remain elevated. Although the supply had been pushed to the Asia market in April, May and June we see these flows decreasing now toward Asia, said Pamela Munger, a senior market analyst at Vortexa.