Stocks of diesel in Asia have jumped sharply since an EU ban on imports of the Russian-origin product came into force on Feb. 5, 2023, reports Oilprice.com, citing traders and industry analysts .
On the eve of the entry into force of European bans, Russia began to redirect the flow of petroleum products to North Africa and Asia. At the same time, Europe began buying more diesel and other fuels from the Middle East, Asia and North America to replace lost Russian supplies.
Reuters estimates that weekly diesel stocks at the Singapore hub hit their highest level in more than a year last week, with Russia now selling more diesel to Africa, replacing previous supplies from sellers in the east. from Suez.
The diesel glut in Asia won’t last more than a few months, analysts predict, as demand is expected to pick up in the second half of the year.
It is reported that Russia is also increasing its diesel fuel exports to Saudi Arabia – both through direct deliveries and transshipment according to the “ship to ship” concept.
By using ship-to-ship loading, Russia is shortening tanker routes to Africa and Asia.
At the same time, Europe is increasing its diesel imports from the Middle East and Asia to compensate for the loss of Russian supplies.
In March, shipment of diesel fuel from Russia jumped 400,000 barrels per day from February
Jay Maru, a leading oil analyst, pointed this out in his study.
Earlier, the media reported that Russian energy carriers “banned” in the European Union still reach the markets through “grey” routes via third countries.
Photos used: Aramco
