If Russia stops supplying diesel, Europe will have another headache
According to Vortexa Ltd., in the first 24 days of this month, the European Union and the UK imported almost half of the diesel from Russia by sea. Dependence has risen sharply compared to the total volume of imports in the industry has increased sharply to the border with the impact of the strikes, due to the coverage of the construction area of the French refineries.
In general, according to Vortexa, from November 1 to 24, tankers delivered an average of 1.34 million barrels of diesel per day to the EU and the UK. This is significantly less than the average, but more than the average for the first 10 months of the year.
From February 5, the EU will almost completely limit the sea import of diesel and other oil products from Russia. The country is still the block’s independent supplier, meaning buyers will face sharp shortages if they can’t increase supplies from other countries.
From November 1st to 24th, the EU and the UK cover about 600,000 bpd of diesel, accounting for 45% of total consumption. In October they delivered 34% from Russia, and the average for the first 10 months of the year reached 51%.
Primorsk
Exports from the Baltic port of Primorsk increased sharply last month and are expected to rise even more next month. A significant part of Russian emissions is consumed in the Amsterdam-Rotterdam-Antwerp region, the center of oil trading in northwestern Europe.
December will be the month when traders in ICE Gasoil – the European diesel futures market – will be allowed to supply fossil fuels from Russia to warehouses in ARA raw materials under contracts.
This could be that incentive for those who want to sell Russian products on futures contracts. Since January, deliveries of gasoil from Russia to ICE have been banned. Diesel from Russia is also imported to France, Germany and Poland.
Deliveries from Russia
Despite the fact that Europe is forced to look for alternative sources, Russia also needs new markets to sell its exports: in September, more than half of exports to the EU.
In addition, Turkey’s buyer’s choice is packaging from Morocco and Tunisia. Russia also exports large volumes of other petroleum products.
Naphtha are petroleum products that can be registered for the production of gasoline or as feedstock in the petrochemical industry.
fuel oilessentially a residual oil product, it has a wide range of uses, including technology development and use as fuel in ships.
The total supply of oil products from Russia this month is approaching a maximum, in barrels per day, since February, when the conflict between Russia and Ukraine.
Not all Russian-made fuel is exported only from the ports of the country; it can also be sent through other countries. This part is not included in the statistics in this article.
Prepared by Profinance.ru based on materials from Bloomberg
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