Oil markets are bracing for a new period of supply tensions as the European Union is set to cut off ties with its largest external diesel supplier when sanctions against Russian-refined fuel imports come into effect in February.
Diesel supplies are already running tight, leading to pump prices being higher than gasoline in many regions. European nations are one of the largest users of diesel relative to other motor fuels, with Russia historically being a major supplier. The EU had initially banned seaborne Russian crude imports on Dec. 5., 2022 And from Feb. 5, the ban will encompass refined fuels like diesel from the country as well.
