Insight
Lomé, Togo in West Africa emerges as a new middle distillate storage/transit hub
Report summary
At the end of September 2020, global length in middle distillates caused by the Covid-19 pandemic resulted in NW European floating storage volumes peaking at over 23 million barrels. Since then the economics of storing volumes offshore has dissipated with strong backwardation in the futures market causing barrels to clear predominantly to the US and West Africa. Middle Distillate traders are now increasingly using Lomé, Togo in West Africa as a storage/transit hub to clear surplus East of Suez volumes into West Africa and to capture any arbitrage openings that materialise to alternative export destinations.
Table of contents
- Why are traders using Lomé as the optimal storage/transit hub in the Atlantic Basin?
- How long will this last?
Tables and charts
This report includes 4 images and tables including:
- Figure 1 – Trade flow of middle distillates from East of Suez production centres into the Atlantic Basin
- Figure 2 – Middle Distillate flows to offshore Lomé – arrival month
- Figure 3 – Middle distillate flows from Lomé to the Americas and West African markets – load month
- Figure 4 – European middle distillate net deficit position
What's included
This report contains:
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