Russian ban and Hormuz setback deliver one-two punch to seaborne diesel
- Russian diesel exports are already down by over 683,000 bpd vs last year’s levels and are expected to fall further over the next two weeks
- Middle East Gulf diesel exports are down by more than 520,000 bpd versus last year’s levels; that deficit should increase due to renewed Hormuz hostilities
- US Gulf is the main producer to fill the gap, but refineries there are already running at full bore, at 96% utilisation
Diesel — which accounts for around a third of coated product tanker cargo volume — is under siege, courtesy of Ukrainian attacks on Russian refineries and Iranian attacks on ships in the Strait of Hormuz
