In preparation for the EU ban on the import of Russian refined products by sea, Europe is purchasing more diesel from Saudi Arabia and the United States, but Europe remains the largest buyer of Russian diesel. Data compiled Thursday by Anadolu.
Effective February 5, the EU will ban seaborne imports of Russian refined oils products. It also prohibits Russian diesel, naphtha and other fuels. This is to ensure that Moscow does not get any more money for these products.
Diesel accounts for more than half of the Russian fuel exports to Europe. Europe is still the largest buyer of Russian diesel ahead of the embargo that will be in effect in ten days. It has also been stocking up on Russian diesel in the months prior to the ban.
According to the International Energy Agency’s latest Oil Market Report (IEA), Russia’s diesel exports soared to 1.2 million bpd in December. 720,000 bpd of that was destined for Europe.
Europe still imports large quantities of diesel at around 600,000. bpd weeks before the embargo goes into effect. Analysts predict that the global diesel market and product flow will change after February 5. Russia may seek to move its refined products to other countries, while Europe will import more from the United States, Middle East and Asia.
According to Vortexa data cited in Argus, Europe will receive the most diesel and gasoline oil from the U.S. this month.
“Europe will be relatively well supplied when it enters the post-Russian diesel world.” In a last week analysis, Pamela Munger, Senior Analyst at Vortexa, stated that a rush for Russian diesel imports during Q3 2022, combined with a warmer European Winter and well-supplied natural gas, has softened panic buying and the diesel supply shock witnessed in October 2022.”
“Unlike the crude market, where many European refiners began testing non-Russian crudes in advance of the Russian crude banning, the cessation in diesel exports to Russia’s core markets could have significant impacts on Russia’s energy flows. This could lead to Russia looking toward a small number of regions for its export outlets and possibly shutting down refinery operations.