NYT: the embargo on oil products from the Russian Federation will hit European motorists
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An embargo on maritime supplies of Russian oil products to the EU, which will come into force on February 5, creates risks for most European truckers and up to 40% of motorists due to a possible shortage and a sharp increase in diesel prices, analysts say The New York Times.
The newspaper notes that diesel futures in Europe are growing in price even before the entry into force of the embargo. At the same time, diesel fuel still plays a crucial role in the EU economy. The NYT estimates that in addition to truckers, up to 40% of EU motorists use diesel. In 2022, Russia supplied the EU with about half of all diesel fuel imported into Europe, with a volume of about 700,000 barrels per day, the publication reports.
NYT experts believe that Russian diesel supplies to Europe will be difficult to replace in a short time. The newspaper reports that EU oil refineries have been building up fuel reserves in the weeks leading up to the embargo. According to analysts, Europe will have to increase the import of diesel from other oil-refining powers. Among them are Saudi Arabia, Kuwait, UAE, India, China and the USA.
Russia, according to experts of the publication, can redirect diesel supplies to West Africa, where energy companies allow higher concentrations of pollutants than in the EU. At the same time, the embargo, analysts say, will also hit the Russian economy hard – after February 5, the Russian Federation may lose more than half of the sales markets for its oil products compared to 2021. In particular, Russian oil products may not be in demand in India, which has enough of such raw materials.
The EU states, G7, Australia, Norway and other countries introduced a price ceiling for oil supplied from Russia at $60 per barrel on December 5, 2022. January 20 coalition of Western countries agreed introduction of two price ceilings for Russian oil products. One will be set for products that are traded at a premium to oil (diesel fuel, gas oil), the second – for products that are traded at a discount to oil (fuel oil). The restriction will take effect on February 5.
Read more about the embargo on oil products – in the material “Kommersant FM” “Oil products have their own ceiling”.
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