Analysis: Europe boosts Russian diesel buying ahead of ban set to rock market

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European traders are rushing to fill tanks with Russian diesel as the clock runs down on a Feb. 5 European ban expected to tighten supplies, redraw global shipping routes and increase price volatility.

Great Wenchao bulk carrier lies at anchor in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana MeelLONDON, Jan 16 - European traders are rushing to fill tanks with Russian diesel as the clock runs down on a Feb. 5expected to tighten supplies, redraw global shipping routes and increase price volatility.

"But without Chinese exports pushing swing barrels westward, Europe is unlikely to replace the 0.5 million bpd loss in Russian diesel exports come the embargo," Energy Aspects analysts said.European diesel imports from Russia stand at 770,000 barrels per day so far this month, the highest since March last year, according to energy analytics firm Vortexa.

Even as governments and companies sought to sever economic ties with Russia after it invaded Ukraine, Europe last year relied on Russia for nearly half of its imports of diesel, known as middle distillates, Refinitiv data shows.An EU ban on Russian crude imports that took effect in December will be broadened to include refined fuels from Feb. 5.

Some of the world's largest tankers, with a capacity of 2 million barrels of oil, have been chartered in recent months to import diesel into Europe from Asia and the Middle East.

 

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They're going to buy it at a market price at a discount and benefit from it when the price rises, it's reasonable, but is it worth it?

EU is besides themselves. This makes no sense. Russia will benefit due to higher margins.

Fantastic!!!

Shame on europe

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