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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DIESEL
Middle Eastern diesel exports to Europe fell to 248kbpd in October, the lowest level in eleven months, down from 307kbpd in September, as refinery disruptions, mainly Al-Zour, and more exports from the US weighed on supplies, S&P Global Commodities at Sea data showed.
- Middle Eastern shipments to Europe are at 262kbpd so far in November, as most heavy refinery maintenance is concluding.
- Saudi Arabia's SATORP refinery was under maintenance for all of October while Kuwait's Al-Zour refinery faced several unplanned incidents, weighing on its supplies of diesel and with fuel oil. Oman’s Duqm refinery is currently ramping up. Kuwait’s Al Zour refinery is expected to be fully operational in the next couple of weeks, a Bloomberg source said on Monday.
- Al-Zour did not export any diesel in October and no cargoes have been registered so far in November according to shipping data. Production was down to 325kbpd end-October Kuwait Integrated Petroleum Industries said. The refinery came close to a near halt after a malfunction of a valve delivery fuel gas to the plant, the firm said on 12 November.
- "Al-Zour is probably the main reason" for the Middle East diesel downturn to Europe, said Eleanor Budds, research and analysis director at S&P Global Commodity Insights.
- "In addition, the diesel arb [arbitrage] from the US Gulf Coast to Europe has been viable recently so more volumes have been coming across the Atlantic, although with US diesel stocks now reported at their lowest point since May, these flows are expected to dry up."
- US diesel exports to Europe stood at 236kbpd so far in November, compared with 115kbpd in October.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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