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.
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.
Seaborne crude oil supplies made a step higher in October and early November, as core OPEC+ suppliers hike exports. But this is not necessarily bearish as it exposes a lack of spare capacity.