US DIESEL EXPORTS TO EUROPE DIP ON PLUMMETING REFINING OUTPUT

The tightening of diesel supplies in the United States, coupled with disruptions to global trade, has led to a reduction in U.S. diesel exports to Europe this month. This decrease in exports exacerbates the existing supply crunch in Europe, where reliance on Russian fuel exports has been affected. The challenges in securing U.S. diesel have contributed to a surge in diesel cracks, reaching a four-month high of over $48 a barrel. This surge has diminished arbitrage opportunities for shipping diesel to Europe from the United States.

Furthermore, disruptions in global trade routes, such as Houthi attacks on vessels in the Red Sea, have affected Europe's other suppliers in the Middle East and Asia. These disruptions have led to lengthy delays and reduced the profitability of shipping diesel from these regions to Europe. As a result, European imports of U.S. diesel have declined by almost half this month compared to January. This reduction highlights the challenges faced by European markets in accessing diesel supplies amid global supply chain disruptions and tightening availability of U.S. diesel exports.

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