Analysts: Despite sanctions, Europe continues to import large volumes of diesel

Analysts: Despite sanctions, Europe continues to import large volumes of diesel

Analysts: Despite sanctions, Europe still manages to import large volumes diesel

Fuel refueling, gas station – illustrative photo.

London – Europe is still managing to import large volumes of diesel despite the European Union embargoing supplies of the fuel from Russia earlier this month. Imports of diesel into Europe could thus slightly exceed January's level in February, mainly thanks to deliveries from the Middle East and Asia. They could climb to a seven-year high in February. This follows from the estimates of the analytical company Vortexa.

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“The absence of Russian barrels has likely opened up an opportunity for suppliers located east of Suez,” Vortexa analyst Pamela Munger said, according to Bloomberg. The EU introduced an embargo on the import of oil products from Russia on February 5. The EU embargo on Russian oil entered into force two months earlier. The embargoes are part of the EU's response to the Russian military invasion of Ukraine.

Due to the impending embargo, Europe began significantly increasing diesel imports at the end of last year. Diesel profit margins in Europe have been falling gradually this month, helped by ample supplies and lower demand related to a mild winter, according to Bloomberg.

The average price of diesel in the Czech Republic decreased over the past week, according to data from CCS on Thursday. by 27 pennies to 36.60 crowns per liter. In the following week, according to analysts, prices could continue to fall.

Russia has been the main supplier of diesel to Europe for many years. The production of European refineries is not sufficient to cover the demand from the large number of diesel cars operating in Europe. Last year, according to data from Refinitiv, Russia accounted for almost half of Europe's diesel imports, even as European countries and businesses tried to limit trade relations with Russia in response to its attack on Ukraine.