Free Trial

Red Sea Crisis Diverts Diesel to APAC: Argus

OIL PRODUCTS

More Middle East and Indian gasoil will remain east of Suez as the Red Sea tensions hit the East-West arbitrage, according to Argus.

  • Surging freight rates have made the Europe-bound route uneconomical, with freight costs associated with the longer voyage around the cape rising by $0.85m-$1m.
  • This is causing cargoes to now head towards Australia or Singapore, with Indian and Middle East gasoil arrivals into APAC set for a five-month high in Jan.
  • The additional cargoes have helped to ease the temporary tightness in the Asian gasoil market. These cargoes will also help resupply APAC during a heavy maintenance season.
  • Chinese gasoil exports are expected to be lower in Feb, at around 0.7m mt, compared to earlier projections of 0.9m-0.8m mt.

To read the full story

Close

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.