Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Anxious Europe buys up diesel ahead of Russian import ban

Anxious Europe buys up diesel ahead of Russian import ban

Fears of a supply shortage are easing after diesel imports to Europe soared to a record high in December.
European countries imported unprecedented quantities of diesel fuel in December as buyers rush to secure supplies ahead of an EU ban on Russian oil products.

According to analysis by the Refinitiv market data firm, shared with POLITICO, diesel imports to the European region soared to a record 8.2 million tons in December.

Before the war in Ukraine, Russia typically supplied more than half of the EU’s imports and around 10 percent of its total demand for diesel — a vital fuel for road vehicles, trains and shipping as well as industrial and agricultural machinery. Imports of all Russian petroleum products, including diesel, will be banned by the EU from February 5 in one of the toughest sanctions yet against Moscow, aimed at squeezing the fossil revenues Vladimir Putin uses to finance his war against Ukraine.

The ban had prompted fears of a diesel supply crunch in the EU in the dead of winter, at a time when consumers are already suffering from high inflation and industries are feeling the burden of sky-high energy prices. But the recent glut of imports will likely mean any problems will not be felt in the immediate aftermath of the diesel ban, market analysts said.

“In the immediate future there won’t be a crunch,” said Raj Rajendran, a lead analyst at Refinitiv, part of the London Stock Exchange Group. “Europe has bought huge amounts of diesel to build up inventories as a safety net which is providing some reassurance to get through this winter. Current warmer weather is also reducing heating oil demand.”

The European region in Refinitiv’s analysis includes both Turkey and the U.K., although the U.K. stopped importing Russian diesel some months ago.

The record imports in December include significant, last-minute EU purchases of Russian diesel, which are continuing into January, according to Refinitiv’s analysis. European countries and Turkey imported 3.51 million tons of diesel from Russia in December.

Germany was the EU’s biggest importer of Russian diesel, bringing in 604,000 tons in December, the most since May 2020. Imports also surged from alternative suppliers in the Middle East, as well as from India and China, where low economic activity due to COVID has driven down domestic demand and forced Beijing to allow refiners to export more diesel.

Kuwait and Saudi Arabia have emerged as the major alternative exporters, likely to replace at least some Russian diesel supplies once the ban comes into effect, said Claudio Galimberti, from energy research firm Rystad.

“Europe’s shortfall will be close to half a million barrels of diesel,” said Galimberti, adding that the EU lacked the refining capacity to fill the gap. Europe will therefore have to rely on imports from alternative sources to Russia. Fears of an actual shortage of diesel are dissipating, however. “We are not in a situation where we are going to run dry in areas of Europe,” Galimberti added. “But the price of diesel could go even higher than it has been in this past year.”

Rajendran agreed. “The concern could come in spring, in the second quarter. If [diesel] inventories drop significantly, there will be huge pressure on prices.”

Raluca Marian, director for EU advocacy at road transport lobby IRU, which represents more than 170 companies, said prices were “stable” at the moment. “We can’t exclude problems, but it won’t be a general shortage,” she said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
×