According To Platts Cflow, the Gulf Coast Distillate exports from US Gulf Coast to Europe Touches 250,000 mt.
An estimated 250,000 mt of distillates were tracked leaving USGC toward Europe. A total of seven vessels were loaded, out of which, 3 headed toward the Mediterranean, as per the reports displayed in the cFlow, a Platts trade flow software. The volume so quoted is derived from the vessel’s deadweight tonnage.
These exports, in particular, is a new high in a comparative month-on-month tonnage of distillate export seen so far. This extreme uptick in export barrels can be attributed to increased U.S. production, as well as open arbitrage opportunities into South America and Europe.
Last week, about 440,000 mt of distillates left for Europe from the USGC. After accounting for diverted cargoes, the estimated imports for September would range at about 1.05 million mt so far. I n August, a total of 1.69 million mt distillates left for Europe.
European traders find this strategy of the US pushing surplus into Europe an unexpected move. In October, traders opine stocks to be a bit tighter and with the heightened arbitrage flows, dipping demands and logistical constraints, supply to German markets, the distillate stock value remains high in Amsterdam- Rotterdam-Antwerp. The upcoming refinery maintenance season could be the next opportunity for traders to mop up the surplus.