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Russia bans diesel exports in fuel crunch

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Published08 JUL 26 - 13:02 Reading time  minutes

“It is undoubtedly very bullish for diesel. It has been feared for several weeks now, and there is no reason to suspect Ukraine will cut back the attacks. There isn’t enough capacity in the market now to make up for zero Russian diesel exports and perhaps even imports.” — Neil Crosby, Head of Oil Research at Sparta Commodities

  • Expert: Neil Crosby (Head of Oil Research, Sparta)
  • Publication: Financial Times
  • Market Focus: Diesel, Distillates, Refining, Trade Flows
  • Geographies: Russia, Europe, US, Middle East

In a recent analysis for the Financial Times, Sparta’s Head of Oil Research, Neil Crosby, calls Russia’s diesel export ban undoubtedly bullish, warning there simply isn’t enough capacity in the market to replace zero Russian exports and possible imports. The ban, which runs until July 31, sent London wholesale diesel futures up as much as 14% to $1,114 a tonne and US diesel prices more than 13% higher. Crosby notes the move has been feared for weeks and sees no reason to expect Ukraine to ease its refinery attacks, keeping supply risk firmly in place. Traders should watch replacement flows from the Middle East and India and the crack spread for signs of whether the market can close the gap.

[Read Neil Crosby’s full market commentary in the Financial Times]

Author

Neil Crosby

Head of Research

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