Global fuel wholesalers warned on Tuesday at the FT Global Commodities Summit in Lausanne that Global markets are facing an acute shortage of diesel fuel. Europe is most vulnerable. The specter of rationing this fuel is becoming more and more real.
“Everyone will be worried about diesel fuel delivery. Europe imports about half of its diesel fuel from Russia and half from the Middle East, said Russell Hardy, president of Swiss crude trading company Vitol.
Amrita Sen, chief oil analyst at Energy Aspects, added that “diesel is far more affected” than petroleum products as Europe imports nearly 1 million barrels per day of Russian diesel, and The world is in conflict with almost low oil reserves Financial Times reports.
Expert: Oil rationing is possible
Refineries could increase diesel production in response to higher prices at the expense of other petroleum products to maintain supply, the head of Swiss company Vitol said Tuesday in Lausanne, but I admit that legalization was possible Financial Times reports.
France’s TotalEnergies has informed that in the absence of various instructions from European governments, it will terminate contracts for the purchase of Russian diesel fuel “As soon as possible and by the end of 2022 at the latest“.
In this way, the French wanted independence from Russian supplies. Total Energy said in a statement that it will import petroleum products from other continents. And you will bet on the SATORP refinery in Saudi Arabia.
Experts say the shortage will affect not only Europe but the world as a whole. Jeremy Weir, CEO of Singapore-based Trafigura, estimates that the global market will be 2-2.5 million barrels of Russian oil production, divided into crude and refined products, the Financial Times reported.
See also: Will the fuel be cheaper? “Maybe in the second half of the year.”
Europe will end up with Russian oil. But not immediately
Global wholesalers expect shortages based on sanctions already in place against Russia. However, it is known that the European Union, for example, is preparing another package of restrictions that will hit the regime of Vladimir Putin. They cut money from him to finance the war.
The sanctions will not include the embargo on Russian oil. While this is a considered choice, what is it anyway Recently, according to foreign commentators, that has been out of the question. The European Union is preparing to become independent of Russian raw materials, but – for now – there is no question of a quick matter.
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