“Global diesel prices and refining margins rose sharply after another round of US sanctions against Russian oil trade.”, — write: epravda.com.ua
Global diesel prices and refining margins rose sharply after another round of US sanctions against Russian oil trade. This is reported by the Reuters agency. On January 10, the US imposed the toughest sanctions against Russian producers and tankers to cut the revenues of the world’s second largest oil exporter, which finance the war in Ukraine. Most of the new restrictions concern vessels from the so-called “shadow fleet”, which tries to circumvent Western sanctions. These vessels were carrying oil to India and China, where refiners benefited from cheap Russian supplies banned in Europe after Moscow’s invasion of Ukraine. Advertisement: “Diesel margins rose on news of sanctions and we expect significant disruptions to Russian diesel exports,” Energy Aspects analyst Nataliya Losada said. According to her, at least 150,000 barrels of diesel per day from Russian oil refineries Gazprom Nafta and Surgutnaftogaz were at risk. The premium for the next month’s European diesel contract over the six-month forward contract rose to $50.25 a tonne on Thursday, a 10-month high, according to LSEG data. The diesel market was already in a backwardation mode, with contracts with nearer trading dates priced higher, indicating tight supply.Advertisement: Diesel refining margins hit a five-month high of $20 a barrel on Thursday. In Asia, diesel refining margins jumped 8% on Monday to more than $17 a barrel, the biggest gain since September, before easing to around $16.50 on Thursday. We will remind: the Office of the Control of Foreign Assets of the US Treasury Department introduced sanctions against the two largest oil companies of the Russian Federation, Gazprom Neft and Surgutneftegaz, as well as ship insurance providers Ingosstrakh and Alfastrahovanie. According to the Financial Times, the measures include blacklisting 183 “shadow fleet” vessels involved in the export of energy resources from Russia. Oil prices rose on Friday and are approaching a fourth consecutive weekly increase. New U.S. sanctions against Russian energy have limited supply and raised spot prices and transportation rates.