A diesel glut in Asia is encouraging traders of the fuel to ramp up cargoes from India to Europe, where stockpiles were ravaged by refinery halts and unusual weather earlier this year.
Around 577,000 tons of the fuel already arrived this month or are en route to Europe from India’s refineries — whose supplies get sent east or west depending on which market is best — according to shipping and port-loading information compiled by Bloomberg. The cargoes will arrive this month and next, implying about a doubling in the normal flow rate.
Unexpected halts at a batch of refineries, particularly in Germany, caused the diesel market in Europe’s Amsterdam-Rotterdam-Antwerp trading hub to surge in the past several months as stockpiles dwindled. For some consumers, the pain was compounded by a drought that dried up the river Rhine, preventing barges from delivering the fuel.
“There is an amount of resupply that needs to be done in Europe,” said Olivier Jakob, an analyst at Petromatrix GmbH based near Zug, Switzerland. Read More