Diesel Availability a Boost for Product Tankers
China suspended refined-product exports around the Golden Week holiday after a sharp increase in diesel exports during September, while Russia remains largely sidelined from the export market following the extension of its diesel restrictions through October. Middle Eastern diesel/gasoil exports reached 1.12 mbpd in September, down 36% year-on-year, with flows to Europe roughly 50% lower, and US diesel/gasoil exports reached around 1.57 mbpd in Q3 2026, up 28% year-on-year. Europe is increasingly turning to alternative suppliers, with October arrivals of diesel/gasoil from India expected at around 228k bpd, up approximately 65% month-on-month.
Why it matters: This matters for trade flows: Europe's search for replacement diesel barrels is lengthening shipping routes and shifting sourcing toward the US Gulf, India and potentially South Korea.