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Europe diesel prices soar as Ukraine strikes hit Russian exports

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Published07 JUL 26 - 12:54 Reading time  minutes

“High prices are attracting more cargoes from the Middle East and India, which should eventually limit further gains in the medium term.” — Abhishek Kumar, Senior Oil Analyst at Sparta Commodities

  • Expert: Abhishek Kumar (Senior Oil Analyst, Sparta)
  • Publication: Bloomberg
  • Market Focus: Diesel, Distillates, Refining, Trade Flows
  • Geographies: Europe, Mediterranean, Middle East, India

In a recent analysis for Bloomberg, Sparta’s Senior Oil Analyst, Abhishek Kumar, warns that Europe’s diesel supply risks won’t fully clear even if Ukraine’s strikes stop and Persian Gulf flows normalise. Heat waves pose a threat to refiners in southern Europe and the Mediterranean, forcing run cuts and raising the chance of breakdowns, at the same time Russian June shipments fell more than 50% year on year and Germany’s EBV moves to refill strategic reserves. Kumar notes a counterweight: high prices are attracting more cargoes from the Middle East and India, which should eventually limit further gains in the medium term. Traders should watch Mediterranean refinery run rates and East of Suez arb flows to gauge how quickly incoming barrels ease the tightness.

[Read Abhishek Kumar’s full market commentary in Bloomberg]

Author

Abhishek Kumar

Senior Oil Market Analyst

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