Drakensberg Energy

Drakensberg Energy Drakensberg Energy is a refined petroleum trading company designed to optimize its participation in the global energy markets.

Drakensberg Energy Secures 12-Month European Middle Distillates Supply ProgramFollowing the expansion of our inland stor...
23/02/2026

Drakensberg Energy Secures 12-Month European Middle Distillates Supply Program

Following the expansion of our inland storage and logistics platform in Africa, I’m pleased to confirm that Drakensberg Energy has secured a one-year structured supply program for non-sanctioned middle distillates.
This strengthens our position into Europe and supports sustained, compliant product flow into key EU markets.

In today’s environment, consistency of supply and disciplined ex*****on matter more than ever. Long-term physical positioning allows us to offer counterparties dependable availability rather than opportunistic cargo-by-cargo trading.
The combination of structured supply and integrated storage continues to move us forward as a serious physical player across Europe and Africa.

We remain focused on steady growth, compliance integrity, and building durable trade relationships.

If you have middle distillate requirements into Europe, feel free to reach out.

Gonnie Monteiro
Director
Drakensberg Energy (Pty) Ltd

Strengthening Our Downstream Footprint in South AfricaDrakensberg Energy is pleased to confirm that we have secured dedi...
19/02/2026

Strengthening Our Downstream Footprint in South Africa

Drakensberg Energy is pleased to confirm that we have secured dedicated inland storage capacity for Ultra Low Sulphur Diesel (ULSD) in South Africa.

This development enhances our ability to:

• Maintain consistent product availability
• Support wholesale and industrial clients with structured supply
• Improve logistical flexibility across key inland corridors
• Execute prompt and forward transactions with greater efficiency

Access to reliable storage infrastructure is a critical component of responsible petroleum trading. It enables disciplined inventory management, stronger counterparty alignment, and improved responsiveness to market movements.

As an independent trading house operating across Africa, the UAE and broader international markets, we continue to focus on building tangible infrastructure-backed capability — not just paper barrels.

We look forward to expanding our supply relationships and supporting downstream partners with structured, dependable ULSD flows.

As the blessed month of Ramadan begins, we extend our sincere wishes to our partners, clients and friends observing this...
18/02/2026

As the blessed month of Ramadan begins, we extend our sincere wishes to our partners, clients and friends observing this sacred time.

May this month bring peace, reflection, strength and prosperity to you, your families and your businesses.

At Drakensberg Energy, we value the trust and relationships we share across regions and cultures. Ramadan reminds us of the importance of integrity, patience, discipline and generosity principles that equally guide our work and partnerships.

Ramadan Kareem to all who are observing.




ULSD Market Snapshot – 10-24 Oct 2025 - Winter-grade transition, tight export flows & elevated marginsKey MetricsThe pro...
24/10/2025

ULSD Market Snapshot – 10-24 Oct 2025 - Winter-grade transition, tight export flows & elevated margins

Key Metrics
The prompt contract for ULSD 10ppm CIF NWE Cargoes (Platts) remains supported, with futures quotes around USD 720/mt for the front‐month.
In the Mediterranean region, the equivalent cargo futures for ULSD 10ppm CIF Med Cargoes are trading in the mid USD 750/mt range.
Refining margins for middle-distillates continue to rise.

Market Notes
The transition to winter-grade diesel is fully reflected in assessments across Northwest Europe and the Mediterranean, with winter specs in play from early September.
Export flows remain a key driver: Indian diesel shipments to Europe reportedly reached their highest level since 2017 in September, driven by attractive margins and reduced Russian refined output.
Despite the elevated exports from India, arbitrage windows remain challenged and supply into Europe remains constrained, supporting the price tone.
On the crude side, rising supply from the Middle East and maintenance at western refineries continue to produce mixed signals, but for diesel the supply–demand balance remains skewed to tightness in several markets.

Outlook
With winter grade specification now in effect, distillate demand can be expected to firm further, especially in Europe and parts of the Northern Hemisphere heading into heating season.
Watch for refinery turnarounds and maintenance schedules: any delay or disruption could tighten the market further.
Export logistics remain crucial: freight costs and geopolitics (including refined product bans or export restrictions) could influence flows and margins.
For markets in Africa, the Middle East and South Asia, tightness in Europe may shift pricing dynamics and create arbitrage opportunities, though transport and logistics must be factored in.

Drakensberg Energy extends warm wishes to our Jewish clients, partners, and colleagues this Rosh Hashanah.As you welcome...
23/09/2025

Drakensberg Energy extends warm wishes to our Jewish clients, partners, and colleagues this Rosh Hashanah.

As you welcome the New Year, may it be a time of renewal, reflection, and joy for you and your families. We wish you sweetness, prosperity, and peace in the year ahead.

Shanah Tovah.

Diesel markets remain tight, and ULSD prices are holding firm across key hubs. In the U.S. Gulf Coast, spot prices have ...
18/09/2025

Diesel markets remain tight, and ULSD prices are holding firm across key hubs. In the U.S. Gulf Coast, spot prices have climbed to around $2.27/gal, up from $2.23 the previous session and nearly 13% higher than this time last year. Similar strength is showing in New York Harbor, where futures have rallied close to 3% in recent days.

Behind the numbers, the story is consistent: global diesel stocks are running below five-year averages, with U.S. and European inventories both under pressure. Refinery maintenance, limited heavy crude supply, and fewer high-diesel-yield feedstocks are squeezing
output at a time when demand has not eased. Transport, industrial, and even seasonal power needs continue to pull hard on the system.

This tight balance has translated into strong refinery margins, with ULSD commanding a healthy premium over crude in most markets. OPEC+ output signals and broader macroeconomic data are now the factors to watch, alongside weekly inventory reports. Any further supply disruptions or refinery outages could accelerate the upward move, while softer economic data may be the only real brake on demand.





ULSD Market Update – September & October 2025The ULSD market is entering a period of mixed signals.Key drivers:Crude Oil...
13/09/2025

ULSD Market Update – September & October 2025

The ULSD market is entering a period of mixed signals.

Key drivers:
Crude Oil: Brent easing from about USD 68 to USD 59/barrel by Q4, lowering input costs.
Inventories: Distillate stocks remain below long-term averages, supported by strong exports and refinery downtime.
Seasonal Demand: Heating oil consumption rises as cooler weather sets in.
Refining Margins: Distillates remain profitable, keeping supply balanced but firm.
Risks: Weather events, logistics constraints, and geopolitics may create volatility.

Outlook (Sep–Oct 2025):
Spot ULSD prices: Stable to slightly lower in most regions.
Retail pump prices: Small declines, slower to adjust than crude.
Inventories: Likely to remain tight with seasonal draws.
Refiners: Margins expected to stay strong on exports and constrained supply.

Takeaway:
Fuel-dependent businesses should review hedging positions, manage inventories carefully, and prepare for potential volatility into Q4.

ULSD Market Snapshot – 2 September 2025Northwest Europe (CIF ARA): ULSD 10ppm was assessed at $714.50/mt, up $18.75/mt d...
03/09/2025

ULSD Market Snapshot – 2 September 2025

Northwest Europe (CIF ARA): ULSD 10ppm was assessed at $714.50/mt, up $18.75/mt day-on-day. FOB NWE cargoes closed at $705.75/mt, reflecting sustained strength in European middle distillates.

Mediterranean (CIF Genoa/Lavera): ULSD 10ppm stood at $721.00/mt, up $18.25/mt, while FOB Med cargoes traded at $710.00/mt, also up $18.50/mt. The Med remains at a slight premium to NWE, underpinned by firm regional demand and constrained clean tanker availability.

Global Context: The rally in ULSD follows refinery disruptions across Europe and West Africa. Platts reported unexpected outages at Dangote’s FCC unit in Nigeria and extended maintenance at Shell Pernis (Rotterdam), both of which reduced prompt availability of middle distillates. Traders noted that despite Dangote’s outage, product remains in tanks, limiting near-term shortages.
Spreads & Differentials: The gasoil 0.1% market tracked higher alongside ULSD, with Med cargoes assessed at $710.25/mt. The ULSD MOPL differential also firmed, reflecting bullish paper market sentiment.

Futures: ICE Gasoil September contracts settled at $703.50/mt, with forward months easing slightly (October $698.75/mt, November $686.00/mt), indicating backwardation in the curve.

Macro Drivers: Brent futures traded around $68.81/bbl (Nov), offering stable feedstock costs. The European diesel complex continues to price in strong road transport demand post-summer and ongoing tightness in the gasoil balance.
Summary:

ULSD prices across Europe surged by nearly $19/mt on 2 September, marking one of the strongest daily gains in recent weeks. Mediterranean values remain firm at a premium to NWE, supported by robust demand and refinery outages limiting supply. Backwardated futures suggest near-term tightness but potential easing into Q4 as refinery runs normalize.

President Trump has convened a packed diplomatic meeting at the White House hosting Ukrainian President Zelensky alongsi...
19/08/2025

President Trump has convened a packed diplomatic meeting at the White House hosting Ukrainian President Zelensky alongside European leaders to push for peace in Ukraine. The talks focused on security guarantees without NATO membership and possible direct talks between Zelensky and Putin, potentially hosted by the US amid cautious optimism from both Kiev and Washington.
Markets showed mixed reactions. Brent Crude climbed over 1 percent, hitting 66.60 dollars a barrel as traders contemplated potential easing of war driven supply uncertainty. Meanwhile, ULSD futures continued to slide, reaching a seven week trough at about 2.24 dollars per gallon, shedding about 5 cents per gallon and down over 2 percent this week a bearish signal despite peace hopes.
This unfolding diplomatic play Trump shepherding a possible Putin Zelensky summit with European support could mark a turning point or just the calm before the next storm.

Trump-Putin Standoff Sparks Oil Market Jitters (Week of 29 July – 3 August 2025)Oil markets are on edge as President Don...
04/08/2025

Trump-Putin Standoff Sparks Oil Market Jitters (Week of 29 July – 3 August 2025)

Oil markets are on edge as President Donald Trump’s threats to sanction Russia unless it agrees to a ceasefire with Ukraine have shifted trader sentiment sharply. Despite weak global demand forecasts and increased production from OPEC+, the market turned bullish, with Brent and WTI prices climbing on the back of rising geopolitical risk.

Brent crude opened the week above $69 per barrel, after Trump not only warned Russia of sanctions but also imposed a 25% tariff—and an additional levy—on Indian crude imports from Russia. India pushed back, saying it has no intention of halting long-term contracts, while China reiterated its right to secure energy supplies based on national interest.

The market’s reaction was swift. Institutional traders increased their bullish positions on Brent and WTI by nearly 40,000 contracts in the last week of July—the largest increase since tensions escalated between Israel and Iran earlier this year. The concern is clear: if Trump enforces secondary sanctions on buyers of Russian crude, it could disrupt up to 7 million barrels per day in global supply, pushing prices sharply higher.

At the same time, U.S. relations with India have soured, with trade tensions rising and strategic deals at risk. Trump has also threatened China with 100% tariffs, a move that could unravel recent trade progress and drive U.S. fuel prices up at home.

ULSD Market Snapshot: 28 July – 3 August 2025Northwest Europe (CIF ARA):Prices trended slightly lower, closing the week ...
04/08/2025

ULSD Market Snapshot: 28 July – 3 August 2025

Northwest Europe (CIF ARA):
Prices trended slightly lower, closing the week around $762/MT, down from the previous week’s $770/MT. The dip was driven by sluggish inland demand and ample product availability across the ARA hub. Margins for refiners came under modest pressure, though crack spreads remained positive.

Mediterranean (FOB Med):
ULSD FOB Mediterranean ended the week at $748/MT, with a marginal week-on-week decline. Strong Russian inflows via Turkish blending hubs continued to weigh on regional differentials, while North African buying remained limited. Traders reported more offers than bids in the East Med.

Middle East (FOB UAE):
The UAE market was stable at $726/MT, with limited spot activity out of Fujairah. East African demand remained firm, but sellers were hesitant to commit volume without firm letters of credit. Arbitrage to East Africa was slightly less attractive due to high freight rates and port congestion in Mombasa and Dar es Salaam.

Asia (FOB Singapore):
FOB Singapore ULSD held around $735/MT, underpinned by steady regional demand, particularly from Indonesia and the Philippines. Chinese exports were subdued, offering some price support. Traders noted that upcoming refinery maintenance across Northeast Asia may tighten the regional balance into August.
























ULSD Market - Post‑OPEC+ | 7–11 July 2025What was evident this past week is when OPEC+ speaks, diesel markets listen. Af...
11/07/2025

ULSD Market - Post‑OPEC+ | 7–11 July 2025
What was evident this past week is when OPEC+ speaks, diesel markets listen. After the July 5 OPEC+ meeting, which confirmed a hefty 548,000 bpd production increase for August—the largest monthly rise yet—the diesel markets paused to absorb the implications. While the decision signals an aggressive strategy to reclaim market share, it’s the backdrop against which global demand, refining activity, and geopolitical uncertainties that are now playing out.

On July 5, eight key OPEC+ members, including Saudi Arabia and Russia, convened and agreed to implement the largest monthly supply boost since the policy shift in April. The official statement reaffirmed a gradual unwind of the 2.2 million bpd cuts; August’s increase alone covers roughly 80% of that total (Reuters).

Spot ULSD showed mild resilience—rising, but far from spiking. July futures stayed elevated.
Thanks to seasonal demand and downstream refinery operations, refiners still enjoy strong margins—even as diesel inventories tighten

Middle East shipping tensions and Red Sea risks are still simmering—keeping risk premia in play .
NB: Abundant crude ≠ loose diesel market — unless refining output outpaces demand. The real test comes with actual barrels hitting markets in August.
Northern Hemisphere summer travel may absorb much of this extra supply, at least short-term so we are not out of the woods as yet.

What next:
August 3: Next OPEC+ meeting to decide September quotas—likely another 550 kbd increase (Reuters).
Mid‑July: EIA inventory update—crucial for gauging whether diesel physical tightness persists.

Address

21 Mark Street
Stellenbosch
7600

Opening Hours

Monday 08:00 - 16:30
Tuesday 08:00 - 16:30
Wednesday 08:00 - 16:30
Thursday 08:00 - 16:30
Friday 08:00 - 16:30

Telephone

+27218552194

Website

Alerts

Be the first to know and let us send you an email when Drakensberg Energy posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Drakensberg Energy:

Shortcuts

Share

Category