Record diesel cracks have fostered supplies, visible in strong exports from Asia, the Middle East and the US. Also Russian diesel exports to Europe are stable at a high level. Accordingly markets are cooling and the focus shifts to gasoline and crude.
As the global diesel shortage rises, the world looks to Asia's spare refining capacity for additional supplies. In this insight, we assess how much relief Asia can realistically offer in the near-term.
In this insight we shed light on the diverging trends emerging for crude and refined products loadings from OPEC+.
PADD 3 diesel exports surged in April as import demand strengthened from key consumers in Latin America and Europe - the latter seeking to progressively reduce its reliance on Russian supply. PADD 3 exports rose despite stronger domestic diesel demand, once again underlying the growing global competition for diesel.
Europe has sucessfully made first steps in scaling back Russian oil imports and resupplying from other sources. But only about one third of the diesel challenge has been managed so far, already leading to record pricing. Global refining is severely constrained.
In this insight we examine the pros and cons of some key grades that could see/are seeing a boost in demand as European buyers shy away from Russian crude.
The Omicron variant is sweeping through Asia fast and furious. How much impact has it had on Asia's oil demand so far?
Global crude liftings are falling short of meeting demand in spite of OPEC+ efforts, and the latest trend is furthermore going in the wrong direction.
Global crude liftings are falling short of meeting demand in spite of OPEC+ efforts, and the latest trend is furthermore going in the wrong direction.
Growing diesel tightness globally is fueling a rise in diesel cracks and a widening of the market backwardation. With refinery runs capped by high operational costs and upcoming maintenance activities, the diesel market could tighten further in the weeks ahead.
Omicron: pre-emptive supply cuts & resilient demand draw stocks and lift prices