Kuwait exports its first shipment of modified diesel fuel to Europe

Kuwait National Petroleum Company (KNPC) exported its first shipment of modified diesel fuel to Europe through the Mina al-Ahmadi refinery, KUNA reported citing the oil ministry on Wednesday.

Monday's shipment was a cargo of 38,000 tonnes aboard the tanker POLARACE, the ministry added on Twitter.

The exportation process was carried out in collaboration with the international marketing sector at the KNPC.

Kuwait made its first "winter grade" diesel shipment to Europe in December 2022 -- a 66,000 mt cargo -- as buyers sought alternatives to Russian products, official news agency Kuna reported earlier.

The country's new 615,000 b/d Al-Zour refinery was expected to start up the second of three crude distillation units imminently, S&P Global reported on 25 January.

The Middle East has stepped up its fuel exports to Europe as the EU's embargo on Russian oil products is set to go into effect on 5 February.

Diesel shipments from the Middle East to Europe have seen volumes hit a weekly peak of just below 500,000 b/d in January, according to data from S&P Global Commodity Insights.

Diesel flows to the region from the Middle East hit their third-highest level on record in December at 420,000 b/d, with 60% exported from Saudi Arabia, according to tanker tracker S&P Global Commodities at Sea.

Analysts at S&P Global Commodity Insights now expect diesel exports from the region to Europe to average 890,000 b/d over March-December, compared with 238,000 b/d in the first half of 2022 and 343,000 b/d in the second half of 2022.