Diesel prices have risen sharply in Europe: Russia has banned fuel exports

The price of diesel fuel in Europe has risen sharply after Russia banned the export of fuel.

According to the Frankfurt Stock Exchange, on July 8, the wholesale cost of diesel fuel immediately increased by 12% to $ 1071 per ton. Today, the quotes have slightly decreased, but remain the highest since April, when the Iranian war was going on — $ 1051.

This growth is explained as a new stop of shipping in The Strait of Hormuz, and the fact that Russia has stopped the export of diesel.

"Today, a ban has been imposed on the export of diesel fuel, and this will increase supplies to the domestic market," Deputy Prime Minister Alexander Novak said yesterday at a videoconference with the president.

Russia is one of the largest exporters of diesel fuel. And stopping supplies encourages consumers to look for volumes where companies from the EU buy, where Russian oil products are banned.

"Diesel fuel prices in Europe are rising sharply amid ongoing attacks by Ukraine on Russian oil refineries, which reminds us that the risks to the supply of one of the most important fuels in the world go far beyond the Middle East," Bloomberg writes.

They noted that extreme heat adds another risk factor for refineries in Southern Europe and the Mediterranean.

According to enkorr, almost half of the diesel fuel from Russia has been entering the ports of Turkey and North African countries and the ban creates significant pressure on the Mediterranean market.

"At the end of June, Turkey received 1.03 million tons of Russian distillates, which is 10% less than in May. In July, the volumes will be half as much," the newspaper writes with reference to traders.

"The Turks will now have to look for somewhere 300-400 thousand tons," said the Swiss trader.

"When you think that the situation with diesel fuel cannot be more complicated, it turns out that it is possible. And this is already happening," one of the operators of the Romanian terminal in Constance.