Europe refuses to bargain with Ukraine on diesel: Kiev will feel attacks on refineries

European companies refuse to reduce premiums for diesel fuel for Ukraine after large-scale attacks by the Ukrainian Armed Forces on Russian refineries and a ban on fuel exports from Russia.

"The return of diesel fuel quotes to four-digit values was the main event of the week. However, this time the market met the price shock much more calmly than in the spring. Suppliers mostly retained the July agreements, while Ukrainian traders began to gradually revise wholesale prices, putting in them an increase in the cost of resources and logistics," enkorr writes.

According to him, suppliers are gradually reviewing spot party premiums. Thus, the lower premium level for diesel fuel from the Romanian Constanta rose to $ 42-$ 43 per ton, whereas previously it was $ 3-$ 5.

"Taking into account the five—day quotation period, no one understands what the actual cost of this resource will be," said one of the traders.

Negotiations are going hard, as Ukrainian companies have not been able to reach an agreement with the Greeks either.

"They took a tough stance, and after applying the ban on the export of diesel from Russia is all the more not interested in a reduction," one of the importers told the publication.

So, Hellenic Petroleum offers diesel fuel at a premium of $ 37-$ 40 per ton to FOB Med, while Ukrainian buyers tried to negotiate with the company on premiums at the level of $ 25.

Another problem for Ukrainian importers is the Danube.

"According to forecasts, during July the water level may drop to critical values when the barge load will be 50%. This will inevitably affect the cost of transportation. Now the working draft is about 2.7 m at a rate of 3.5 m (about 80% of the volume is ek)," Vadim Verbitsky, the owner of United Barge Company Europe, told the publication.

Already, according to market information, writes enkorr, barge freight has increased by a quarter — from $ 24-$ 26 per ton to $32-$33.

As EADaily reported, the cost of diesel fuel in Europe has increased, and the price corresponds to the oil level of $ 100. The European Union is also paying for large-scale attacks by the Ukrainian Armed Forces on Russian refineries.