Oilprice.com: "banned" Russian diesel fuel poured into Asia
Diesel inventories in Asia have jumped sharply since the EU ban on imports of this product of Russian origin came into force on February 5, 2023, Oilprice.com reports, citing traders and industry analysts.
On the eve of the entry into force of European bans, Russia began to redirect the flow of oil products to North Africa and Asia. At the same time, Europe began to buy more diesel and other fuels from the Middle East, Asia and North America to replace lost Russian supplies.
Reuters estimates that weekly diesel inventories at the Singapore hub hit their highest level in more than a year last week as Russia now sells more diesel to Africa, replacing previous supplies from sellers east of Suez.
Asia's diesel glut will last no more than a few months, analysts predict, as demand is expected to surge in the second half of the year.
It is reported that Russia is also increasing the export of diesel fuel to Saudi Arabia, both by direct deliveries and transshipment according to the “ship-to-ship” concept.
By using ship-to-ship loading, Russia is shortening routes for tankers bound for Africa and Asia.
At the same time, Europe is ramping up diesel imports from the Middle East and Asia to make up for the loss of Russian supplies.
In March, the shipment of diesel fuel from Russia jumped by 400 thousand barrels per day compared to February
Jay Maru, a leading oil analyst, pointed out in his study.
Earlier, the media reported that Russian energy carriers “banned” in the European Union still get to the markets through “gray” routes through third countries.
- Aramco
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