Egypt’s Diesel Imports Hit Record Levels in July, Tightening Global Supply and Fueling European Shortage
Egypt is ramping up diesel imports to record levels in July as it scrambles to secure backup fuel for power generation amid soaring summer electricity demand.
The country’s aggressive diesel buying spree is now impacting global fuel markets—especially in Europe, where supplies are tightening rapidly.
According to data from energy analytics firm Vortexa Ltd., cited by Bloomberg, Egypt imported over 370,000 barrels per day of diesel and gasoil during the first half of July.
This marks a 65% increase compared to the same period in 2024 and a 35% rise from June, making it Egypt’s highest diesel import volume since at least 2016.
The surge comes as regional conflicts have disrupted natural gas supplies, with Israel halting pipeline deliveries.
In response, Egypt has turned to diesel and fuel oil as more readily available and cost-effective alternatives for power generation.
This shift is partly driven by the country’s declining domestic gas production and limited capacity for importing liquefied natural gas (LNG).
Diesel is playing a crucial role in powering Egypt’s grid, particularly during peak summer demand. However, this increased reliance on imported diesel is straining global supply chains.
Most of Egypt’s diesel is sourced from the Middle East and Russia, diverting shipments away from traditional markets like Europe.
“Barrels are being pulled from northwest Europe to the Mediterranean, tightening European diesel stocks and intensifying market competition,” said Pamela Munger, senior market analyst at Vortexa.
While preliminary projections suggest that Egypt’s import levels may remain elevated through the end of July, Munger cautioned that changing trade routes and market dynamics could still influence final volumes.
“Looking ahead to winter, diesel could stay tight due to refinery maintenance scheduled for September, although this may be offset by declining power generation needs,” she noted.
A separate Bloomberg report underscores the pressure on refining margins. The diesel crack—refining profitability measured by the price difference between diesel and crude oil—is well above typical seasonal levels. This has made diesel refining particularly profitable in Europe.
Meanwhile, the U.S. Gulf Coast is also shipping diesel to the Amsterdam-Rotterdam-Antwerp (ARA) hub, adding further strain to Atlantic Basin supplies and supporting global crude oil prices.
