New York, an unexpected source of diesel supply, has become a notable diesel exporter as Russia’s ban on fuel exports prompts buyers to seek alternative sources. In the past week, three ships, namely the Mantaro I, the Nord Master, and the Sti Queens, loaded over 1 million barrels of diesel or gasoil combined from New York Harbor’s International-Matex terminal. This amounts to an average of 41,000 barrels per day this month, marking the highest monthly rate since June 2020.
Typically, New York faces a shortage of diesel and relies on imports from Europe and Canada. However, since July, it has consistently been a net exporter, contributing to a decrease in the region’s distillate inventories, which include diesel and heating oil, to their second-lowest level for this time of year.
Out of the three cargoes loaded this week, two are bound for Europe, and the Sti Queens is scheduled to arrive in Paranagua, Brazil, in approximately two weeks. This shift in destination is noteworthy because Brazil had been a significant buyer of Russian diesel earlier this year, moving away from purchases from the US Gulf Coast. However, the US Gulf Coast has experienced a decline in monthly exports this month due to ongoing maintenance activities.
