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Shunning Russian oil could mean catastrophe for EU diesel fuel market — analyst

Banning oil and product flows from Russia to Europe would create a seismic shock, with more than 55% of European imports of diesel and gasoil coming from Russia, analyst with the Rystad Energy consulting firm said

LONDON, April 13. /TASS/. Brussels' possible refusal of Russian oil would have catastrophic consequences for the availability of diesel fuel in the European Union, unless it can find new sources of fuel supplies, Janiv Shah, analyst with the Rystad Energy consulting firm, said on Wednesday.

"Potential fresh sanctions on Russia over its invasion of Ukraine in late February could prove catastrophic for European products unless imports can be secured immediately from new refineries," the expert noted in his commentary which was obtained by TASS.

"Banning oil and product flows from Russia to Europe would create a seismic shock, with more than 55% of European imports of diesel and gasoil coming from Russia," he noted. The main consumers are France and Belgium.

According to the analyst’s estimates, total European demand for diesel and gasoil is set to top 6.7 million barrels per day in April 2022, up by 200,000 barrels per day from March 2022. Shah stressed that Europe has historically relied on Russian imports for ULSD and gasoil, produced in high amounts in Russia.

"The next largest source is Saudi Arabia, however before 2020 the majority of flows heading to Europe shifted to Africa," the analyst said.

As for the UK, which is the most vocal advocate for a phase-out of Russian oil and gas, Russia covers 18% of the UK's diesel needs, according to government figures. In addition to being used by a third of British cars, it is used for filling up trucks, buses, some trains, equipment for agriculture and construction, and also used to generate electricity, the BBC noted.

Commodity and oil executives warned in late March that global markets could face diesel shortages due to Russia’s military special operation in Ukraine, which could lead to fuel rationing in Europe.

On February 24, Putin said in a televised address on February 24 that in response to a request by the heads of the Donbass republics he had made a decision to carry out a special military operation. The Russian leader stressed that Moscow had no plans of occupying Ukrainian territories. After that the US, the EU, the UK and a number of other states announced that they would impose sanctions against Russian legal entities and individuals.

Anti-Russian sanctions

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Europe resumes talks of troop deployment to Ukraine — newspaper

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Russia designs Titan rifle for commandos

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Serbian film director Kusturica announces plans to get Russian citizenship

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UK ambassador to Russia gets note of protest over false info on embassy’s officer

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