OIL PRODUCTS: Egypt's Diesel Imports at Record High in July

Egypt’s diesel imports jumped to a record of more than 370k b/d in the first 15 days of July, Bloomberg reports citing Vortexa data, up 65% y/y and 35% above June’s volumes. 

• Egypt has sharply ramped up diesel imports after regional conflicts forced Israel to halt pipeline natural gas supplies last month.
• Preliminary data for all of July points to volumes holding near record levels observed so far, though changing market dynamics may alter some vessel destinations.
• The increasing diesel imports, primarily from the Middle East and Russia, have diverted barrels away from Northwest Europe and the Mediterranean.
• Diesel refining margins are exceptionally strong in Europe as the crack is well above its typical seasonal levels.
• Dwindling diesel stockpiles in the ARA hub are drawing barrels from the USGC, tightening the Atlantic Basin’s diesel market.
• “As we head toward the winter months, diesel could remain tight due to the seasonal refinery maintenance in September, however mitigated somewhat by the declining needs for power generation,” a Vortexa analyst said.  

Source: Bloomberg Finance L.P.