<article><p class="lead">Europe looks likely to receive more diesel and gasoil cargoes from the US this month than it has for two years, ahead of the EU's ban on Russian oil products imports in early February.</p><p>As much as 660,000t of diesel and gasoil departed the US for Europe last month, Vortexa data suggest, the most for any month since September 2020 and 70pc more than in November.</p><p>The increase came even though US refinery utilisation fell month-on-month. One constraint on US processing came in the form of fires at two refineries, in Oklahoma and Colorado, which in one case led to <a href="https://direct.argusmedia.com/newsandanalysis/article/2405987">temporary closure</a>. </p><p>The December export total is even higher than the 600,000t that departed the US for Europe in September, when the French refining system began to shut down due to a wave of strikes. The increase in December is notable, given that US exports to Europe have tended to be lower structurally since the 330,000 b/d Philadelphia Energy Solutions (PES) refinery was put out of action permanently following a fire in 2019. </p><p>The last time US monthly diesel and gasoil export volumes to Europe surpassed last month's level was in September 2020, when those products from around the world were being funnelled into the extensive storage capacity at Amsterdam-Rotterdam-Antwerp (ARA).</p><p>The US may play a greater role as a supplier of diesel and gasoil to Europe after the EU's ban on Russian products comes into force on 5 February. But traders anticipate that the UAE, Saudi Arabia and India will take a greater share of Europe's diesel import market because they tend to have more cargoes available for spot sales that can reflect arbitrage economics. Many US sellers are usually tied into term contracts to supply Latin America.</p><p>The UAE <a href="https://direct.argusmedia.com/newsandanalysis/article/2406201">ramped up diesel cargo exports</a> to Europe last month. It receives Russian diesel for domestic consumption, freeing up more refinery-produced diesel and gasoil for export.</p><p class="bylines">By George Maher-Bonnett</p></article>
