Mideast boom squeezes gas oil flow to Europe, Asia

LONDON/SINGAPORE (Reuters) – An oil fueled economic boom in Middle Eastern countries is driving local demand for gas oil such as diesel, squeezing supplies to Europe and Asia.

This has tightened supply in both importing regions and forced prices of gas oil up this year to around record levels.

The trend is set to continue until new Gulf refineries come onstream later this decade, traders and analysts said.

Accelerating growth and a construction boom in countries including Qatar and Saudi Arabia have boosted domestic consumption just as the global refining industry is already straining to meet existing demand, particularly from Asia.

Reuters