US Diesel Exports Heading To The Mediterranean On Demand

Another data point.

Just the other day there was an interesting story about increased US gasoline exports.

Now, today, Platts is reporting:US-produced diesel seen heading to Mediterranean on demand boost.

Ultra low sulfur diesel produced in American refineries will soon make its way to the Mediterranean basin to offset lower production in the region and higher demand from farmers and drivers, traders said Tuesday.

A total of 1.2 million mt of gasoil and diesel has been fixed by traders between the US and Europe for June, they said.

While the diesel was initially expected to make its way to the UK, the Amsterdam-Rotterdam-Antwerp hub, France or Germany -- the traditional import locations for the fuel in Europe -- traders said some of it may go the Mediterranean instead.

Countries in the West Mediterranean, such as Portugal, Spain, the south of France or even Italy, are seen as more likely outlets than Turkey, for which shipping will be more expensive.