A huge increase in Saudi Arabia's capacity to produce cleaner diesel will reduce its reliance on fuel imports from next year, forcing current suppliers of the fuel to find new buyers in an over-supplied Asian market.
The majority of new refineries and upgrade projects in the Middle East are designed to produce ultra-low sulphur diesel that meets European environmental standards, so they can export some of it to Europe or Asia.
The multi-billion dollar investments are also likely to transform fuel trade flows in the Gulf as the extra capacity will allow OPEC heavyweight Saudi Arabia to reduce its diesel imports and even become a net exporter in winter when its own fuel needs are lower.
No comments:
Post a Comment