Saudi Diesel Exports Stop Growing for Now

Diesel and jet fuel exports from the Middle East will stop growing in 2018, according to ESAI Energy's recently published Middle East Watch Products. Saudi Arabia, the biggest distillate exporter in the region, will export a similar amount as it did last year, marking a departure from four consecutive years of export growth. This will create opportunities for other diesel exporters, particularly refiners in Russia and the U.S. Gulf Coast, to increase their share of the European market.

Regional exports of diesel and jet fuel will stall at 520,000 b/d in 2018 after growing by an average of 160,000 b/d every year since 2014. Stabilizing domestic demand for diesel in Saudi Arabia is one reason. The government began phasing out fuel subsidies in 2016 and 2017, leading to a collapse in domestic diesel demand that left increasing volumes available for export both years. This will not occur again in 2018, with the government keeping the price of diesel unchanged. Meanwhile, Saudi refinery output of diesel and jet fuel will stay flat until 2019, when the new Jazan refinery adds 400,000 b/d to Saudi refining capacity.

“Production increases from the region's other distillate exporters, Kuwait and the UAE, will be too small to make up for stalling Saudi supplies this year,” explains Amrit Naresh at ESAI Energy. “With the European diesel deficit set to grow by another 50,000 b/d this year, competition among Russian and U.S. exporters to place barrels in Europe should support middle distillate spreads to crude there. But in 2019, Jazan will provide a boost to Saudi diesel output, and growth in diesel exports to Europe should resume.”

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

Saudi ArabiaKingdom of Saudi ArabiaexportsDieselESAI EnergyMiddle East

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 6 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 10 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