Bloomberg: Europe is at risk of “running out” of diesel due to sanctions against Russia

Another headache seems to be added for the Europeans and it goes by the name of diesel. Specifically, according to Bloomberg, in view of the implementation of the new package of European sanctions that the EU has imposed on Moscow the stoppage of the flow of diesel from Russia is expected in a few monthswhich supplied the EU with about 200 million barrels a year, resulting the danger of the EU running out of diesel is visible.

It is noted that from the beginning of February, with the new sanctions of the European Union, the delivery by sea of ​​almost all refined oil products – including diesel fuel – from Russia, the largest foreign supplier of the European continent, will be prohibited.

“As time runs out, amid a period of extreme market tightness, marketers will have to make dramatic cuts“, the Bloomberg report points out and adds that in any case, weaning off Russian fuel supplies will not be easy.

The European Union’s diesel trade with Russia, a vital supply-line to a fuel-hungry continent, is poised to halt in coming months https://t.co/Wv09YjrtKF

— Bloomberg Markets (@markets) October 26, 2022

At the same time, he points out that from July to September imports decreased according to data from Vortexa Ltd. compiled by Bloomberg. But now they are on the rise again and reach around 500,000 barrels per day. To meet the cut-off deadline, from November 1 imports must be reduced by 5,000 barrels per daywithout deviating from the program.

However, stopping the flow will not be easy on the part of Europe comments Bloomberg which cites France as an example, one of the biggest importers in Europe, which had recently cut its own diesel production due to strikes at its oil refineries and had to buy more. The domestic production in Germany, country where Europe’s diesel demand is highest, is also at risk because the Schwedt refinery is set to lose access to crude oil via the Druzhba pipeline.

The EU will have to look for alternatives and as the report says it is expected to compensate for the lost Russian supply by importing more from producing regions such as the Middle East.

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