US Gulf Coast to help supply record Mediterranean diesel imports
“The cross-Atlantic trade route for diesel is being closely watched after arbitrage opportunities for traders opened up in response to the Iran-Israel conflict and subsequent US air strikes that raised concerns about supply disruptions, especially in the shipping bottleneck of the Strait of Hormuz, according to an analysis by Sparta.”
Bloomberg, June 27, 2025 – US Gulf Coast refiners are set to increase diesel exports to Europe, a trend that could continue through summer, driven by soaring demand in the Mediterranean. Vortexa noted that the increase has already boosted freight rates by 40%. With domestic diesel consumption at its lowest seasonal level since 2020, US refiners are exporting 1.65 million barrels per day of distillates, the highest since 2019. However, US distillate inventories remain at a 25-year seasonal low. Despite initial arbitrage opportunities following the Iran-Israel conflict, these have largely closed due to rising freight costs and supply chain concerns.
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