Arrivals of gasoil and diesel at the US Atlantic Coast regions have soared to a record high so far in November, tanker tracking data showed. US Atlantic Coast regions receive fuels imported from Europe, including the Baltics countries. US receipt of fuels from these regions are expected to surpass 102,000 bpd this month, increasing by more than 100% from October to the highest level since at least January 2016.
Reimposed coronavirus-related lockdowns are depressing fuel prices in Europe, which opens up the arbitrage trade with the US. Europe typically imported fuels from the US for most of the time. The flows usually reverse during cold winters in the US Northeast. This year, the trend is accelerated by the slumping European prices. As of last week, gasoil inventories at independent storage in the Amsterdam-Rotterdam-Antwerp hub dropped 8%, mostly due to rising exports to the US.
