Europe banned most oil shipments from Russia almost a year ago, but it’s binging on diesel that may well have been made from Russian crude, according to Fortune magazine.
While it’s not possible to say with certainty that it originated in Russia, as India also processes oil from elsewhere, Moscow’s deliveries have given Indian refineries an ability to produce abundant diesel.
The surge in diesel imports from India also illustrates a fundamental shift in oil trading in the wake of the the Ukraine war. A year ago, Russia was Europe’s top supplier of diesel, a fuel vital to the industrial and transport sectors. The EU banned seaborne imports of Russian crude in December and oil products in February.
In response, Europe and the UK have sought diesel supplies from other markets. India is helping to fill a supply gap as European imports from the US, Turkey and Saudi Arabia slip in November. Arrivals of Saudi diesel are set to drop to about 94,000 barrels a day, the lowest since February 2020.
The “availability of Saudi barrels has fallen sharply in October and November due to planned local refinery maintenance, boosting interest for Indian diesel,” said Eugene Lindell, head of refined products at industry consultant Facts Global Energy.
Share this:
