Middle East diesel exports to Europe head for six-year low in September

Middle East diesel exports to Europe are heading for a six-year low in September after the US-Iran agreement to open up ship traffic through the Strait of Hormuz unraveled in July, according to S&P Global Commodities at Sea data Sept. 21.

Diesel exports have averaged 110,000 barrels/day so far this month, with Oman the top supplier and Romania the top recipient, CAS said. That marks the lowest since February 2020 and compares with 191,000 b/d in August.

Oman's exports averaged a record 130,000 b/d in August, taking advantage of its position outside of the Strait of Hormuz, according to CAS data.

Oman's Sohar and Duqm ports have been taking advantage of their position outside of Hormuz, according to CAS.

Platts, part of S&P Global Energy, assessed the ultra-low sulfur diesel 10 ppm FOB ARA barge price at $1,536/metric ton Sept. 18, compared with $752.25/mt before the start of the war Feb. 27.

Prices remain elevated against a backdrop of sustained physical tightness in the European diesel market, driven by the disruption to Middle East crude exports and Russia's diesel export ban.

These high prices are supporting crack spreads and incentivizing European refiners to produce diesel over its codistillate jet fuel. Platts assessed the 10 ppm CIF NW Europe cargo outright price at $1,642.25/mt Sept. 15, the highest since records began in 2007.

By comparison, the Middle East gasoil assessment was at $164.10/barrel, or about $1,203/mt, according to Platts data.