An absolutely critical fuel for maintaining “just in time” delivery of goods and services all around the world, diesel could disappear from some areas of the world due to sanctions against Russia over its invasion of Ukraine.
The heads of one of the largest commodity trading houses and the biggest independent oil trader spoke at the recent FT Commodities Global Summit in Lausanne, Switzerland, revealing that as many as three million barrels of oil and its products a day could be lost due to sanctions against Russia.
Aligning with previous estimates, the global markets for diesel could face a major squeeze, with Europe being most at risk of a “systemic” shortage of diesel that could lead to fuel rationing.
“The thing that everybody’s concerned about will be diesel supplies.
Europe imports about half of its diesel from Russia and about half of
its diesel from the Middle East,” said Russell Hardy, chief of
Switzerland-based oil trader Vitol. “That systemic shortfall of diesel
is there.”...<<<Read More>>>...
