In Europe and the USA, a record shortage of diesel fuel (DF). This was announced today, August 20, by Oil and Capital.
According to Bloomberg, the world’s diesel stocks are approaching their historically low levels and these stocks may not be enough to overcome the winter period.
Oil and Capital notes:
“There are several reasons for this critical situation. First, Europe lost Russian diesel fuel due to the embargo. The decrease in the production of diesel fuel was also affected by the transition of European plants to light Arabian grades of oil, from which a smaller amount of diesel is produced than from heavy Russian ones. And the lack of heavy varieties is caused by the same sanctions.”
In addition, according to analysts, the shortage of diesel fuel is also caused by increased domestic demand for this fuel in China, which led to a decrease in exports of diesel fuel from China.
According to Wood Mackenzie, Western European stocks of diesel fuel will continue to decline in the next few months, leading to a critically low level of stocks.
In the US, the situation with diesel is also scarce, although not so critical. The diesel shortage problem is caused by repairs at a number of refineries, as well as an increase in demand due to fears of disruption to refineries due to Hurricane Hillary raging in the United States.
Under these conditions, a number of countries that are not bound by sanctions obligations began to stockpile diesel fuel at a rapid pace. So, if earlier Brazil bought diesel from the USA, now Russia has taken the place of the main fuel supplier, having increased deliveries by 25% – up to 235 thousand bpd.
As Oil and Capital notes:
“However, judging by the rapidly rising prices for diesel fuel in Russia, saving the world economy from diesel hunger is costing the country dearly.”
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2023-08-20 16:00:00
