It seems that Europe’s crisis to find alternatives to Russian diesel has ended, with the entry of new countries into the line of vital supplies for the main sectors.
Diesel exports to Europe from countries other than Russia recorded a remarkable rise, and total shipments to the old continent of diesel and red diesel are expected to rise to the highest level in 4 months, at 1.25 million barrels per day during the current month of May, according to data compiled by Bloomberg. From the analysis of Vortexa Ltd., which specializes in shipping information.
It is noteworthy that red diesel is an inferior type of diesel, containing 0.005% sulfur.
Diesel exports to Europe
Diesel exports from the Middle East and the United States to Europe have succeeded in filling the gap caused by the suspension of imports from Russia.
The European Union had approved a ban on imports of Russian diesel and refined petroleum products last February, as part of a package of sanctions to dry up the sources of President Vladimir Putin’s war on ally Ukraine.
With the exception of the run-up to the diesel import ban when countries raced to stockpile fuel in preparation for the ban, Europe’s diesel imports in May were in line with average shipment volumes over the past year (2022), with a year-on-year increase.
In detail, diesel shipments from Middle Eastern countries and the United States are likely to account for the largest share during May.
Diesel supplies from Saudi Arabia are expected to reach a new high, reaching around 324,000 barrels per day.
US diesel flows will also rise, the largest since August 2020.
In contrast, you will see shipments of diesel Asian Declining this month, due to weak flows from China and Singapore, while Indian diesel shipments to Europe will jump.
The importance of Russian diesel
The developments exemplify Europe’s success in escaping its former over-reliance on Russian diesel imports; Moscow was the largest exporter of diesel to Europe.
Russian diesel flows accounted for half of those incoming to the European Union and the United Kingdom, according to the report, which was seen by the specialized energy platform.
The failure to find alternatives to Russian diesel would threaten the availability of the fuel used in almost everything from industry to shipping and transportation.
In a related context, Russian diesel exports transported by sea to northwestern European countries declined to 2% at the end of February 2023, compared to 53% during the period between October 2021 and September 2022.
Russian diesel flows to Europe fell to 1.77 million tons in February, according to Refinitiv tracking data.
The European embargo has reshaped the global energy landscape and disrupted supply chains Pay alla From Moscow and Europe to find new clients.
The following infographic – prepared by the specialized energy platform – monitors diesel exports from the Middle East to Europe during the period from January to September 20, 2022:
Saudi diesel
A report by the US Energy Information Administration revealed, on March 7, 2023, about that Saudi Arabia topped the list of countries with the largest increase in diesel flows to northwest Europe at the end of February, as it rose to 202,000 barrels per day.
And increased DVD exportsThe Saudis entered Europe from the cities of Yanbu and Rabigh, where Aramco operates a number of refineries with Exxon Mobil, Sinopec, Total Energy and Sumitomo Chemical.
Additional shipments of Saudi diesel are also likely to arrive from Aramco’s Jazan refinery.
In February, 3 tankers carrying about 190,000 tons of diesel departed from the Russian port of Primorsk on the Baltic Sea to Saudi Arabia, according to Refinitiv data.
According to the report, the tanker Serini was heading to the port of Jeddah to unload it, while the port of Ras Al-Tanura was to receive the tankers “Apanimo” and “Wazaria”.
Traders say that Saudi Arabia is re-exporting Russian diesel to other countries, after carrying out some refining operations. because it contains a high percentage of sulfur.
And it was necessary for the Russian diesel exports to Europe to pass through refineries to get rid of the sulfur, and therefore Saudi refineries carry out this task for local use or for the purpose of re-export.
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