Saudi and Kuwait lead diesel exports to EU

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Standard & Poor’s global commodity trading agency analysts anticipate a rise in diesel exports from the Middle East to Europe in March, following their recovery in February.

Saudi Arabia and Kuwait are expected to lead diesel exports to Europe, as refineries in the Gulf region increase production to meet high European demand for oil raw materials, reports Al-Qabas daily. The European Union’s ban on Russian oil products, imposed on February 5, 2023, is expected to contribute to the increased demand for diesel shipments from the Middle East to Europe.

The average diesel shipments from the Middle East to Europe reached 374 thousand barrels per day in February, the highest level in two months. Notably, shipments from Kuwait more than doubled in February compared to January.

Saudi Arabia was the largest exporter of diesel to Europe in February, followed by Kuwait. Egypt also resumed diesel shipments to Europe for the first time since August 2023. Refinery production in the Middle East is expected to rise to 9 million barrels per day in the first quarter of 2024, compared to 8.8 million barrels per day in the last quarter of 2023.

This increase marks the first time that Middle East refineries are projected to consume over 9 million barrels per day of crude oil in the first quarter. Average exports of refined petroleum products from the Middle East to Europe reached 185,000 barrels per day in February, the highest level since April 2023. Additionally, exports of gasoline products to France and aviation fuel to the Netherlands saw significant increases, reaching their highest levels in recent years. Overall, the report highlights the shifting dynamics in global diesel trade, with Europe increasingly relying on imports from the Middle East and America following the ban on Russian oil products. Middle East refineries are expected to ramp up production to meet this demand, leading to increased diesel exports to Europe