Analysts: Europe continues to import large volumes of diesel despite sanctions

Europe continues to import large volumes of diesel, despite the European Union imposing an embargo on supplies of the fuel from Russia at the beginning of this month. Diesel imports to Europe could therefore slightly exceed January levels in February, particularly thanks to supplies from the Middle East and Asia. These could reach a seven-year high in February, according to estimates by analytics company Vortexa.

„The absence of Russian barrels has likely opened up an opportunity for suppliers based east of Suez,“ Pamela Munger, an analyst at Vortexa, said according to Bloomberg.

The EU imposed an embargo on imports of Russian oil products on 5 February. An EU embargo on Russian oil had already come into force two months earlier. The embargoes are part of the EU’s response to Russia’s military invasion of Ukraine.

In anticipation of the impending embargo, Europe began significantly increasing diesel imports towards the end of last year. Diesel profit margins in Europe have gradually declined this month, with ample supplies and lower demand due to the mild winter contributing to the trend, Bloomberg reports.