NEW YORKWASHINGTON, Feb 26 Reuters A slump in U.S. refining activity and disruptions to global trade have tightened diesel supplies in recent weeks, dampening historically high U.S. diesel exports to Europe this month.

Difficulties in securing U.S. diesel complicate an existing supply crunch in Europe, which previously relied on Russian fuel exports. U.S. diesel cracks briefly surged to a four month high of over 48 a barrel this month, crimping arbitrage opportunities to ship the fuel to Europe.

Many of Europe39;s other suppliers in the Middle East and Asia have been forced to traverse around the Cape of Good Hope due to Houthi attacks on vessels in the Red Sea, adding lengthy delays and making that trade less profitable too.

European imports of U.S. diesel fell by almost half this month to 6.65 million barrels, down from 11.44 million barrels in January, which marked the highest level since August 2017, according to analysis by ship tracking firm Kpler.

European diesel appears to be the key atrisk product due to rerouting, supply availability, and distorted arbs, Macquarie analysts said in a note this month.

The decline in trade came as the 435,000 barrelperday BP Whiting refinery in Indiana a major U.S. diesel producer was forced shut in early February following power outages.

That outage coincided with operational issues at several plants from a midJanuary cold snap, like TotalEnergies39; 238,000 bpd Port Arthur, Texas, refinery. Others, including Motiva…