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The global diesel market is showing signs of chaos, undermining what will send the world economy into even greater inflation. Fuel in Europe is becoming too expensive at a time when the continent prepares to ban imports from a key supplier like Russia, writes money.bg.
Meanwhile, the United States has the lowest fuel stocks for this time of year since 1982.
Chaos is the last thing Europe needs right now amidst high energy prices.
In the United States, fuel manufacturers are under pressure to limit exports abroad and are penalized for low diesel fuel stocks.
It goes without saying that diesel fuel is widespread and is the backbone of the global economy. It is used for transportation, heating and powering of industrial processes, which means that rising prices can literally increase anything.
According to Mark Williams, director of WoodMackenzie Ltd., the rise in diesel costs affects everyone because diesel prices affect the direct costs of manufacturing, transportation and heating.
As diesel prices rise, so do the costs of raw materials, which are passed on to consumers.
The state of the market can be described as alarming in Berlin, Paris and even Moscow. Last month, Europe received two-fifths of its diesel imports from Russia. For its part, Russia continues to export around 80% of its fuel supplies to Europe.
In France, strikes in the sector also continue as nearly a third of the country’s petrol stations face fuel shortages this week.
However, the strike action subsided. The workers of the French factories of Exxon Mobil canceled the strikes.
