Europe suffers from Egypt's panic buying as it records a new diesel-import high

Business Insider

16-07-2025

Egypt is increasing diesel imports to new highs in July, as it races to secure adequate backup fuel for power generation in the face of increased energy demand.
Egypt significantly increased diesel imports in July 2023 to meet rising energy demands.
The country sourced diesel primarily from the Middle East and Russia, impacting European supplies.
Egypt's diesel consumption aligns with reduced domestic natural gas production and summer energy needs.
Egypt's unrestrained diesel purchase is said to be heavily influencing the global markets, notably in Europe, where supplies are becoming tighter.
According to Bloomberg statistics from energy analytics firm Vortexa Ltd., Egypt imported more than 370,000 barrels of diesel and gasoil per day during the first 15 days of July.
This is a 65% rise over the same period last year and 35% higher than June's intake, making it the biggest volume since at least 2016.
As territorial hostilities prompted Israel to stop pipeline natural gas deliveries, Egypt has substantially boosted its imports of diesel in recent weeks.
Diesel is used in power plants in the Northern African country.
As a result, to alleviate summertime power shortages, diesel alongside fuel oil now serve as less expensive alternatives in Egypt, seeing as its domestic gas output has decreased dramatically and its infrastructure for importing LNG is still rather restricted.
The diesel imports are primarily sourced from the Middle East and Russia, diverting supplies away from other traditional markets.
According to Pamela Munger, senior market analyst at Vortexa, barrels are being diverted from northwest Europe to the Mediterranean, heightening competition and straining European diesel stockpiles.
While preliminary estimates for the rest of July indicate that import levels may remain near current highs, Munger warned that shifting market dynamics and changes in shipping routes might still affect final delivery numbers.
'As we head toward the winter months, diesel could remain tight due to the seasonal refinery maintenance in September, however mitigated somewhat by the declining needs for power generation,' Munger stated.
A report by Bloomberg highlights that the crack, or the price of diesel relative to crude oil, is significantly higher than its usual seasonal levels, which makes diesel refining margins in Europe unusually good.