A supertanker carrying a cargo of diesel from the Center East is en path to the fuel-starved European market, reflecting provide tightness within the area.
The VLCC Nissos Keros loaded about 2 million barrels of ultra-low sulfur diesel from Saudi Arabia’s Jubail terminal and is at the moment signaling France the place it’s attributable to arrive Aug. 30, in line with Kpler and ship-tracking information compiled by Bloomberg.
The vessel, which often transports crude oil, was re-configured to hold diesel. Cargoes of the gasoline would sometimes be carried on smaller tankers, however with freight charges elevated after the newest assaults on delivery within the Purple Sea, operators have an incentive to wash up soiled tankers to haul merchandise as an alternative and reap the economies of scale.
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Europe’s diesel market stays underneath stress, pushed by a mix of decrease refinery output, expensive rerouting of imports to exchange shunned Russian provides and sanctions-related uncertainty. The arrival of a giant cargo could present short-term reduction, however dependence on long-haul imports continues to show the European market to spikes in freight prices and provide volatility.
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