Gulf-Europe distillate exports soar despite Red Sea disruptions
Given that the Red Sea shipping disruption remains unchanged, why did Middle East volumes suddenly spike in April? “The main driver behind the large volumes that landed in Europe from the Gulf was a relative weaker Asian market compared to Europe, leaving Europe as the best option to place Gulf and West coast of India barrels for April delivery,” Jorge Molinero, Distillates Analyst at Sparta tells MEES.
MEES, May 10, 2024 – Jorge Molinero, Distillates Analyst at Sparta, commented on the surge in GCC distillate exports to Europe, noting that the primary driver was a weaker Asian market compared to Europe. He explained that despite the increased freight costs due to Red Sea disruptions, the arbitrage from the Arabian Gulf to Europe remains profitable for gasoil and jet fuel, with Middle Eastern refineries increasing supply post-maintenance.
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