South Korean Diesel Heads 19,000km to Europe Amid Energy Crisis

Europe is facing an energy crisis as it imports diesel from South Korea, over 19,000 km away, due to record price spreads. The tanker Priamos will carry approximately 90,000 tonnes of South Korean diesel to either the UK or Rotterdam in the Netherlands, brokered by Trafigura Group. This move is driven by a widening price differential between European and Asian diesel, which has reached its largest since records began in 2023.

The region's limited refining capacity and disruptions caused by the Russia-Ukraine war and Middle East conflict have tightened the global diesel supply chain. Asian refiners, however, have continued producing refined products without major issues, allowing them to export fuel to other regions. China is expected to increase its fuel exports this month as it eases wartime restrictions.

Competition for natural gas is also intensifying, with Europe needing over $8.1 billion in additional purchases to meet its minimum storage target of 75%. LNG carrier traffic through the Strait of Hormuz has fallen sharply, and the EU's ban on Russian LNG imports in January will further increase supply pressure.