Expect Diesel Price Drops in EU Amid Russian Import Ban

The price of diesel in the European Union (EU) is expected to fall due to the ban on imports of Russian products, including diesel, which comes into effect on 5th February. The ban has a price cap which will reduce the amount of revenue flowing to Moscow. The pending ban has resulted in a rush of diesel supply in the EU, where the EU imported around 146,000 metric tons of diesel per day in the week leading up to 29th January, compared to the normal amount of 88,000 tons a day. The EU diesel market is also expected to experience “significant tightening” after the sanctions take effect, regardless of the recent surge in diesel imports. This comes as U.S. inventories of diesel remained steady at 31.8 days of cover in the most recent weekly report.

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