Asia Has Too Much Diesel and It’s Likely Headed to Europe
- Fuel’s discount in Singapore to European price has deepened
- Asian oil demand has weakened amid spread of delta variant
This article is for subscribers only.
When the pandemic spread across Asia last year, oil traders sent an armada of tankers to haul excess diesel supplies out of the region. Now, as the delta variant of the coronavirus rips across the continent, the same thing could happen again.
The fuel’s discount in Singapore to the price in Europe recently touched its lowest level since April, data compiled by Bloomberg show. That helps to provide an incentive to ship it west from Asia, where it can fetch higher prices.