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Record eastern diesel to hit Europe as mega refineries hit full stride

Question asked by jillian.sherburne Champion on Sep 10, 2015
Latest reply on Sep 14, 2015 by jillian.sherburne

A mammoth 1.4 million tonnes of diesel has already been booked from new mega refineries in the Middle East, and export-oriented refineries in India, to land in Europe in September, according to traders and Reuters shipping data.

While Europe's imports typically peak in the autumn, during refinery maintenance season, Middle Eastern shipments were turbo-charged by the addition of crude producer Saudi Arabia's new 400,000 barrel per day (bpd) Yasref refinery.

Already, stocks of distillates in the Amsterdam-Rotterdam-Antwerp hub have hit all-time records, according to Dutch consultancy PJK International. Figures from industry monitor Genscape show gasoil stock levels in ARA at nearly 5.7 million tonnes at the end of August - nearly one million above the previous year.

But traders and analysts said Europe's refinery margins will be saved for a few more months, largely thanks to cheap crude, which cut refinery costs and spurred demand.

Low water levels on the Rhine river also crimped stocks in inland markets, such as Germany and Switzerland, meaning buyers in those countries will at some point need to restock from the ARA volumes.

Any refinery news from your regions of the world?

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