Distillate Fuel Oil Oversupply Means Shippers Take The Long Route Around Africa

Europe’s Distillate Fuel Oil Oversupply Means Some Shippers Take The Long Route Around Africa

In Europe, the combination of low winter heating demand, high refinery runs, and increased imports have kept distillate fuel oil inventories in the Amsterdam, Rotterdam, and Antwerp (ARA) area far above normal. Higher inventories have lowered distillate futures prices in the ARA area to a point where inventories are being held in floating storage and imported cargos are being diverted to longer voyages.

Source: U.S. Energy Information Administration, This Week in Petroleum

Europe is a net importer of distillate fuel oil, which is used both as a heating fuel and as a transportation...