FINWIRES · TerminalLIVE
FINWIRES

Europe Diesel Imports Rebound as US Refiners Replace Middle East Supply, Vortexa Says

By

Europe's diesel imports rebounded in May from decade lows reached in April, as a surge in US refinery exports offset the near disappearance of supplies from the Middle East Gulf and India's west coast, Vortexa strategists said in a note on Thursday.

Mick Strautmann, market analyst at Vortexa, said seaborne diesel and gasoil imports into Europe from external regions climbed to 1.5 million barrels per day in the first 18 days of May, up 16% from a year ago.

The rebound came despite a collapse in traditional East of Suez supply flows. Diesel exports from the Middle East Gulf to Europe fell to about 5,000 b/d in early May from 110,000 b/d a year earlier, while shipments from India's west coast dropped to zero from 190,000 b/d over the same period.

The combined loss of about 300,000 b/d from those suppliers was more than compensated for by rising Atlantic Basin exports, particularly from the US.

Atlantic Basin has reorganized around the gap, with PADD 1 and PADD 3 diesel/gasoil exports to Europe rising by 400,000 b/d over the year, rather than covering the East of Suez loss on their own, Strautmann said.

Vortexa said that additional volumes also came from the Red Sea-Gulf of Aden region and Canada's east coast.

The shift highlights Europe's growing reliance on US refiners to replace disrupted East of Suez supplies, following sanctions and geopolitical tensions that reshaped global diesel trade flows.

European Union sanctions imposed earlier in 2026 on diesel refined in India and Turkey from Russian crude had already reduced East of Suez flows before the closure of the Strait of Hormuz effectively halted remaining shipments, Vortexa said.

Meanwhile, gasoil inventories in the Amsterdam-Rotterdam-Antwerp storage hub remained tight.

Vortexa data showed stocks in the ARA hub were 18% below year-ago levels and continued declining through April and May, underscoring limited stock cover even as imports recovered.

US refiners increased output to fill the supply gap. Combined diesel and gasoil exports from US PADD 1 and PADD 3 reached 1.8 million b/d in the first 18 days of May, up 44% from the previous 2025 monthly high of 1.25 million b/d recorded in June.

Refinery utilization in the US Gulf Coast refining hub, or PADD 3, climbed to 97% in mid-May, Vortexa said, citing data from the Energy Information Administration, about five percentage points higher than the same period a year ago.

Related Articles

Oil & Energy

Egypt Expands Regional Gas Hub Push in QatarEnergy, ExxonMobil Cyprus Deal

QatarEnergy signed a memorandum of understanding with Egypt and ExxonMobil (XOM) to advance the potential commercialization of gas discoveries in Cyprus through Egypt's gas and LNG export network, it said Thursday.The agreement allows the parties to assess future gas development opportunities and build flexible commercial structures linked to Egypt's existing export and domestic gas infrastructure, QatarEnergy said.The agreement supports closer cooperation on natural gas between Egypt and Cyprus, improves the use of existing infrastructure, and reinforces Egypt's role as a potential Eastern Mediterranean gas hub.QatarEnergy Chief Executive Saad Sherida Al-Kaabi said the agreement marks a key step toward unlocking long-term natural gas potential across the Eastern Mediterranean region."We look forward to working closely with the Government of Egypt and our strategic partner ExxonMobil to achieve the objectives of this MoU for the benefit of all parties," Al-Kaabi said.The companies aim to develop integrated and commercially sustainable energy solutions that can support rising regional gas demand and improve links between regional and international markets, according to QatarEnergy.QatarEnergy said the agreement could strengthen broader regional cooperation and help diversify gas supplies across multiple international markets through stronger infrastructure integration.Price: $157.07, Change: $+0.79, Percent Change: +0.51%

$XOM
Oil & Energy

US Oil Update: Crude Gains as Iran Reportedly Rejects US Nuclear Demand

Oil futures rebounded more than 3% on Thursday as Tehran hardened its negotiating position, ending brief optimism on Wednesday over a potential peace deal.Front-month West Texas Intermediate crude futures gained over 3.6% to $101.79 per barrel, while Brent futures rose 3% to $108.24/bbl.Supporting prices, a Reuters' report citing senior Iranian insiders revealed that Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, issued a strict directive banning the export of the country's near-weapons-grade enriched uranium.This directly counters a non-negotiable demand from US President Donald Trump, who had previously assured Israel that any comprehensive peace agreement would mandate the complete removal of highly enriched material from Iranian territory."Relatively speaking, and using US oil inventory as a barometer, Brent will be above $120 in a month," HFI Research noted.On the supply side, the US Energy Information Administration noted that US crude oil inventories decreased by 7.9 million barrels to 445 million barrels for the week ended May 15.Traders remain caught between deepening fundamental supply deficits and shifting political rhetoric.Only a day prior, crude prices dipped after President Trump noted that negotiations were in their "final stages" giving risk managers hope for a swift resolution.However, analysts at ING pointed out that while energy markets have been repeatedly roiled by hollow diplomatic breakthroughs, trading sentiment remains on edge because any prolonged breakdown in talks threatens catastrophic shortages.

Oil & Energy

EMEA Natural Gas Update: Futures Rise as Iran Hardens Stance on Enriched Uranium

European natural gas futures were up on Thursday, reversing losses from earlier in the day, after Iran's Supreme Leader, Ayatollah Mojtaba Khamenei, issued a directive forbidding near-weapons-grade uranium from being sent abroad.The front-month Dutch TTF gas contract rose 0.51% to 49.680 euros ($57.61) per megawatt hour, while the UK front-month NBP contract was up 0.49% to 121.300 British pence ($1.63) per therm.Hardening its stance on one of the key US demands for any peace deal, Tehran has reportedly said that its enriched uranium will stay within its borders, according to a Reuters report, citing two senior Iranian sources.Separately, Reuters reported that senior Israeli officials said US President Donald Trump gave Israel assurances that any peace deal with Iran was subject to its weapons-grade uranium being taken out of the country.This has diminished market optimism about a quick end to hostilities in the Middle East, which is now nearing the three-month mark.The strategically crucial Strait of Hormuz, which accounted for one-fifth of global LNG flows, remained effectively closed for the 12th week running, with just two vessels transiting over the past 24 hours, according to the Hormuz Strait Monitor.European markets remained under pressure, with Norway, the region's biggest piped gas supplier, expecting "capacity cuts deeper than previously expected over the next week," as more seasonal work is expected at the Troll gas field, Daniel Hynes, a senior commodity strategist at ANZ, said.Europe is also grappling with depleted gas inventories, which are currently at 36.87% of capacity, compared to 44.93% a year ago, data from Gas Infrastructure Europe said.Inventories were also significantly below the five-year average for this period, at 50.6% of capacity, according to the Swiss Federal Office of Energy.These factors coincide with a late-May heatwave forecast across the continent, with much of Europe expected to experience a 'heat dome' phenomenon.Countries including Spain and Portugal are projected to see temperatures climb to the mid-to-upper 30s Celsius, likely boosting cooling-related gas demand, according to Severe Weather Europe.