EU Sanctions Against Russia Reshape Global Diesel Market
New EU sanctions targeting Russia's oil industry are set to disrupt global diesel flows, intensifying market pressures. Despite fears of a trade war decline after Trump's tariff threat, diesel prices show resilience. Lower inventories and refining complications exacerbate the situation, driving potential gains for Gulf states.
The European Union's latest sanctions against Russia's oil industry are poised to disrupt global diesel trading routes for the second time since 2022, increasing tensions in an already tight market. Diesel prices have remained unexpectedly strong despite global trade uncertainties.
Historically serving as an economic barometer, diesel is largely used in transportation and industrial sectors. In Europe, a quarter of vehicles rely on diesel fuel. The U.S. has seen a 5% year-on-year increase in diesel consumption, while India's usage rose by 2.1% in May, and China's demand appeared robust in June, according to industry data.
Complicating matters further, new EU sanctions aim to curb Moscow's oil revenue by banning imports of refined products from Russian crude. This could reshape diesel shipping routes, potentially benefiting Gulf states as Indian refiners seek new markets amid a looming shortage of diesel sources.
(With inputs from agencies.)
Google News