Thursday, September 21, 2023

"Russia Temporarily Bans Diesel Exports"

Diesel, very important.*

From Bloomberg via Rigzone, September 21:

Russia temporarily banned exports of diesel in a bid to stabilize domestic supplies, driving prices higher in already tight global fuel markets. 

So far this year, Russia was the world’s single biggest seaborne exporter of diesel-type fuel, narrowly ahead of the US, according to Vortexa data, compiled by Bloomberg. The country shipped more than 1 million barrels a day during January to mid-September, with Turkey, Brazil and Saudi Arabia being among the main destinations.

The ban, which also applies to gasoline, comes into force on Sept. 21, and doesn’t have the final date, according to the government decree.

Diesel prices in Europe jumped on concern the measure will aggravate global shortages. The world’s oil refiners are struggling to produce enough of the fuel amid curbed crude supplies from Russia and Saudi Arabia, the biggest producers within the Organization of Petroleum Exporting Countries and its allies.

“Despite this being only a temporary ban, the impact is significant as Russia remains a key diesel exporter to global markets,” said Alan Gelder, vice president of refining, chemicals and oil markets at consultancy Wood Mackenzie Ltd. “The global refining system will struggle to replace those lost Russian volumes at a time when global diesel inventories are already at low levels.”

Surging Prices
In northwest Europe, the premium of benchmark diesel futures to crude oil — known as the ICE Gasoil crack — climbed sharply, topping $36 a barrel, according to fair value data compiled by Bloomberg....

*If interested see also:

And possibly of interest, 2011's Bill Gates Reviews Vaclav Smil's "Prime Movers of Globalization: The History and Impact of Diesel Engines and Gas Turbines