Asia Supply Shortfall Lifts Diesel Spreads in 2018

Global demand growth will outpace supply growth in 2018, according to ESAI Energy's recently published Global Diesel Outlook. This will allow diesel spreads to continue recovering from 2016 lows. The biggest support for spreads will come in Asia-Pacific. Refineries in three of the main exporters in the region – South Korea, Japan, and India – will lower diesel production or keep production flat next year. While growth in Asia-Pacific diesel supplies stagnates, consumption will grow strongly in India and parts of Southeast Asia. This will help tighten regional markets and lift diesel spreads to crude in Singapore.

Asia's exportable surplus of diesel will fall by 130,000 b/d next year, to 540,000 b/d. While regional supplies stay flat, diesel consumption in Asia will rise by 130,000 b/d, to 9.08 million b/d. Demand growth is led by India, where diesel use next year will grow by 60,000 b/d as the economy recovers from the effects of tax reform and demonetization. India's exports will shrink the most among Asian exporting countries, with strong demand growth and no major refining capacity additions planned in 2018. In South Korea, refinery throughput will shrink, further cutting diesel supplies, following three years of strong growth which saw refiners responding to high margins for petrochemical feedstocks.

“In 2015, an oversupply of diesel triggered inventory builds and a collapse of global diesel spreads to crude in 2016,” explains Amrit Naresh at ESAI Energy. “The recovery of spreads began this year and will continue in 2018. While Asian markets lead the recovery, Europe and the U.S. will also be sources of strength for diesel spreads next year. Still, as European refiners cut throughput, growth in exports from Russia and the Middle East will limit the scope for an even bigger recovery of diesel spreads.”

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site


ESAI EnergyAsiaDieselAsia-Pacific

More items from oilvoice

Cyber Security Experts Unite to Protect Europe’s Critical Industries

CS4CA Summit Returns to London this October Staying abreast of fast-paced industry developments is crucial for cyber security professionals. And while one can learn a lot from publications and social media, it's hard to beat the value of insights gained first-hand from peers. This is why 150+ IT ...

OilVoice Press - OilVoice

Posted 5 months agoPress > cybereurope

Africa E&P Summit

The organisers of the Africa E&P Summit are bringing together Africa's leading exploration companies and governments, just one of the many reasons why you should be attending frontier's event that they are organising and hosting in London at the IET: Savoy Place, 22-23 May. Over 200 key senior exec ...

OilVoice Press - OilVoice

Posted 9 months agoPress > Africasummitoil summit +2

Equinor Deepens in Offshore Wind in Poland

Equinor has exercised an option to acquire a 50 % interest in the offshore wind development project Bałtyk I in Poland from Polenergia. This transaction is a follow-up of the agreement between the two companies which came into force in May 2018 , by which Equinor acquired a 50 % inter ...

OilVoice Press - OilVoice

Posted 1 year agoPress > EquinorEquinor EnergyPoland +2

Nigeria has highest capex on crude and natural gas projects in sub-Saharan Africa Over Next Seven Years, says GlobalData

Nigeria accounts for more than 34% of the proposed capital expenditure (capex) on planned and announced crude and natural gas projects in the sub-Saharan Africa over the period 2018–2025, according to GlobalData , a leading data and analytics company. The company's report: ‘H2 2018 Production ...

OilVoice Press - OilVoice

Posted 1 year agoOpinion > GlobalDataNigeriaCrude +5

CNOOC Signs Strategic Cooperation Agreements with 9 International Oil Companies

HONG KONG, Dec. 18, 2018 /PRNewswire/ -- CNOOC Limited (the "Company", SEHK: 00883, NYSE: CEO, TSX: CNU) announced today that its parent company, China National Offshore Oil Corporation (CNOOC), has signed Strategic Cooperation Agreements with 9 international oil companies including: Chevron, Conoco ...

OilVoice Press - OilVoice

Posted 1 year agoPress > CNOOCChina National Offshore Oil CorporationChevron +11
All posts from oilvoice