War News Updates: EU's February 5th Ban On Russian Diesel Will Impact Global Fuel Markets

A train moves past oil tanks of the NNK-Primornefteproduct petroleum depot in the far eastern port of Vladivostok, Russia, June 11, 2022. (Reuters Photo)

Forbes: EU’s Ban On Russian Diesel To Stoke Turmoil In Global Fuel Markets

Gasoline prices are rising again – up more than 30 cents a gallon in the past month and around 15 cents in the last two weeks alone.

Motorists should brace for more pain. One reason is that the global market for refined products is about to be upended by the latest European Union (EU) sanctions on Russia’s petroleum industry.

On February 5, the EU will ban imports of Russian refined products like diesel, jet fuel, gasoline, and heating oil. While global oil markets have recently handled a similar ban on Russian crude imports quite well, these product sanctions could be far more disruptive.

Markets for refined fuels are much more complex than for crude, with refineries configured to process certain types of feedstock crudes and to manufacture varying slates of products, depending on regional demand patterns.

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WNU Editor: The key paragraph in the above Forbes article is this ....

.... Global diesel supplies are already tight. It’s unclear how Europe will replace nearly 500,000 barrels per day of Russian diesel, especially since the continent has shut down over 1 million barrels a day of refining capacity in the past few years due to the global pandemic and radical climate policies.

Update #1: EU refineries are stocking up on what they can .... EU ramps up non-Russian diesel imports ahead of embargo (Argus).

Update #2: This will impact US fuel prices .... New York Gasoline Shortage Brews on Fallout From EU's Russia Ban (Bloomberg). More here .... Russia sanctions may jeopardize US gasoline supply – Bloomberg (RT).

Update #3: The EU is not ready for this embargo (see tweet below):