Russia Update on refined product ban - Jan 24
Posted: Tue Jan 24, 2023 4:01 pm
From OilPrice.com
- In less than two weeks, the EU’s embargo on oil product imports from Russia is set to kick in, and despite a declining trend, Russian diesel deliveries to the EU are still some 450,000 b/d strong.
- A diesel price spike seems almost inevitable as middle distillate inventories in OECD Europe remain some 30 million barrels below the 5-year average and US diesel production is hamstrung by idled refining capacity.
- Just as Europe is bracing for the impact of the diesel ban, strikes began at three French refineries, curtailing supply of middle distillates and gasoline in the country at the worst possible time.
- Europe’s key diesel futures, the front-month ICE gasoil contract, surpassed the $1,000 per metric tonne mark for the first time since November 2022, indicating that the diesel squeeze is on.
- In less than two weeks, the EU’s embargo on oil product imports from Russia is set to kick in, and despite a declining trend, Russian diesel deliveries to the EU are still some 450,000 b/d strong.
- A diesel price spike seems almost inevitable as middle distillate inventories in OECD Europe remain some 30 million barrels below the 5-year average and US diesel production is hamstrung by idled refining capacity.
- Just as Europe is bracing for the impact of the diesel ban, strikes began at three French refineries, curtailing supply of middle distillates and gasoline in the country at the worst possible time.
- Europe’s key diesel futures, the front-month ICE gasoil contract, surpassed the $1,000 per metric tonne mark for the first time since November 2022, indicating that the diesel squeeze is on.