Oil refineries in the Middle East are ramping up diesel deliveries to Europe, giving the continent an early glimpse of how it might fare without supplies from Russia.
About about 435,000 barrels a day of diesel-type fuels are expected to arrive at European ports from the Middle East, this month, according to tanker tracking and Vortexa Ltd. data compiled by Bloomberg. That’s the highest since at least the start of 2019.
Europe will ban imports of diesel from Russia starting early February as punishment for the country’s invasion of Ukraine. While that’s still five months away, the restriction will be felt far sooner in the trading market. The measure will create an acute need for deliveries from elsewhere since Russia has long been Europe’s top external supplier.
The “Middle East is likely to be a prime supplier” this winter, said Steve Sawyer, director of refining at industry consultant FGE, who expects European demand to rise year-on-year by then.
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