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New York Sends Diesel to Europe in Rare Reversal

  • Exports to further stretch U.S. markets, add to pump prices
  • Arbitrage economics are complicated by steep backwardation
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Diesel Price Spike at 'Biblical Proportions,' Says Blas

U.S. fuel markets are getting even tighter as Europe’s scramble for alternatives to Russian diesel flipped New York from a typical import region to an exporter.

In a rare reversal of normal trade flows, New York is sending two diesel cargoes to Europe, even as regional inventories are at multiyear lows and prices hover close to record highs. The European Union relied on Russia for about a fifth of its diesel imports in 2019.