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
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×