Asia Steps In to Fill Diesel Supply Gap in Africa as Middle East Exports Crash
Asia’s diesel exports to Africa are surging to nearly five-year highs, as Middle East’s sales to Africa crashed to nine-year lows amid threats to shipping and refinery outages, a Reuters analysis of ship-tracking data and volumes showed on Monday. The Middle East conflict has made shipping of fuels, including diesel, to east Africa challenging, with ongoing security threats to tankers in both the…
Diesel exports from Asia to Africa are reaching near five-year peaks, as shipments from the Middle East plummet to nearly nine-year lows, according to a Reuters analysis based on ship-tracking data. The Middle East conflict has raised security concerns for fuel shipping, especially through the Strait of Hormuz and the Bab el-Mandeb Strait.
The ongoing threats have hampered Saudi Arabia's supply, which once made up roughly 40% of Africa's diesel imports. Consequently, Asian refiners have sent up to 15 million barrels of diesel to Africa in August, the highest volume in over four and a half years. This surge in Asian supplies aims to offset the dwindling Middle East exports, which have dropped to the lowest level in nearly nine years.
Before the ongoing unrest, Africa largely relied on Middle Eastern exports for its diesel needs, but recent challenges have reduced the flow of fuel to the continent. The Jazan oil refinery, for instance, did not ship any diesel to Africa in August, compared to 163,000 tons in July. However, the disparity in diesel prices between Asia and Africa remains significant, providing opportunities for Asian exporters to continue their exports into Africa.
Written by urgent.news from OilPrice's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
