Middle East diesel exports to Europe slump to 3-year low, with UAE out of market

Middle East diesel exports to Europe slumped to a three-year low in February, with the UAE out of the market since December, in line with slow economic growth in the region, according to ship-tracking by S&P Global Commodities at Sea(opens in a new tab).

Shipments averaged 242,000 b/d in February, down from 312,000 b/d in January and the lowest since 198,000 b/d in January 2022, according to CAS. Even US shipments have slowed, averaging 163,000 b/d in February, the lowest since October 2023.

"Europe's economy remains weak, implying soft demand," said Naing Oo, senior adviser for global oil analytics at S&P Global Commodity Insights. "There have also been supply issues, with the Jazan refinery in Saudi Arabia down for maintenance for about 45 days." He noted Europe's overall diesel demand in 2024 fell year over year and was down again in the 2025 first quarter from a year earlier.

Asia has taken up some of the slack, with diesel shipments from the Middle East to China climbing to a record 40,000 b/d in February from zero in January and 24,000 b/d in December, according to CAS. Oman was the sole supplier in February.

Jet fuel exports came to 385,000 b/d, with the UK, France and the Netherlands as top destinations, and Kuwait by far the top supplier at 262,000 b/d in February, according to the ship-tracking data.

Kuwait's 615,000 b/d Al-Zour refinery is targeting an increase in ultra-low sulfur diesel exports meeting French specifications and the start of German-specification ULSD exports, a refinery spokesperson told Platts, part of Commodity Insights.

The refinery's exports of European ULSD meeting French specifications have more than doubled in the past year, the spokesperson said. The refinery is also on track to build capabilities to produce a more stringent ULSD grade in 2025 that meets German specifications, if there is demand.