According to CCTV news, on December 5 last year, the Group of Seven, the European Union and Australia imposed price restrictions on Russia’s seaborne crude oil exports. Beginning on February 5 this year, Western countries’ price limit orders for Russian oil products will also come into effect.
In response to sanctions such as oil price caps imposed by Western countries, Russia has taken countermeasures, prohibiting the supply of oil products to countries that have imposed price caps. This also means that Europe will not be able to continue to import Russian diesel at that time, and this may further affect European countries’ industries such as automobiles, ships, construction and machinery manufacturing, making the current economic problems in Europe worse.
According to data from Votexa Consulting, an energy research organization cited by Bloomberg, about half of the EU and the UK’s diesel imports will come from Russia in 2022. Last year, the EU imported about 220 million barrels of diesel products from Russia. As of December, the EU and the UK brought this down to 40% by importing replacement products from other countries. However, in the face of the upcoming price limit order, this huge import gap is still difficult to be properly resolved. At present, European countries are mainly focusing on the Middle East to solve the problem, while the United States, a long-term supplier of petroleum products, has also significantly increased its shipments of petroleum products in recent weeks. It is estimated that the production capacity of diesel in the United States will hit a new high this year, and it will continue to make profits in the process of exporting to Europe.
However, some analysts say that the EU’s expectation of the effect of the price limit order on the impact of Russia’s energy export revenue is tantamount to seeking fish from a tree. On the one hand, Turkey, as a non-EU member state, can bypass all current sanctions and import Russian oil, and the diesel it produces can also bypass sanctions and supply Europe. On the other hand, if the Russian petroleum products originally exported to European countries are not digested by the market enough, Russia may reduce the output of refineries, leading to further tightening of global fuel supply, which in turn will push up fuel prices, making the international fuel market more complicated and difficult Forecast, and then affect the current European economy.
Editor Deng ShuhongReturn to Sohu to see more
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