Quick overview

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Tankers transporting diesel to Europe have altered their course at sea as the war in Iran raises prices and increases competition for supplies. According to Vortexa and ship-tracking data gathered, four tankers—the Aliai, Minerva Vaso, Grand Ace6, and Elka Delphi—recently loaded diesel-type fuel in the United States and began sailing across the Atlantic.

The other three were indicating Amsterdam, and the Aliai was indicating Gibraltar. All of the ships have since made abrupt turns; the Grand Ace6 is currently signaling Lome in Togo, a country in West Africa, while the other three are traveling southeast. According to Vortexa data, they are transporting roughly 1.2 million barrels of diesel-type fuel collectively.

The tanker diversions occur as the war in Iran effectively closes the vital Strait of Hormuz, upending global energy supply chains. Fuel supplies are already under extreme strain in Asia due to markets being deprived of millions of barrels, and analysts and oil traders have warned that Europe may experience shortages in the upcoming weeks.

Diesel prices have skyrocketed in Asia, as none of the ships are indicating Asian destinations. Another indication of how the crisis is affecting the world’s energy markets is that some of these barrels may eventually be going to buyers in the East.

Philip Jones-Lux, senior oil analyst at energy analytics firm Sparta Commodities, stated, “Europe’s time will come, but right now it is Asia that is screaming the loudest.” He stated that although Europe may be lacking imports of oil products, there is still an abundance of crude available for processing. According to Jones-Lux, a supply shortage is causing crude runs at oil refineries in Asia to decline. Diesel fuel, which powers everything from trucks to construction equipment, is a net import for the UK and the European Union.