London
CNN
—
Europe’s ban on Russia’s diesel arrived painlessly on Sunday.
Although the EU cut off its biggest supplier, diesel futures prices in the bloc fell 1.6% on Monday, amounting to a 20% loss over the past two weeks as demand in the region has waned, and efforts by countries to stockpile ahead of the ban have started to pay off.
The price drop will be met with relief by millions of the continent’s truckers, drivers and businesses that rely on diesel. About 96% of trucks, 91% of vans and 42% of passenger cars in the European Union run on the fuel, according to the European Automobile Manufacturers’ Association.
“The expectation was that, when the ban came in, diesel supply into Europe would tighten but, actually, that’s currently not materializing,” Mark Williams, a research director at consultancy Wood Mackenzie, told CNN.
The diesel…
2023-02-06 17:33:40 Diesel prices fall in Europe despite ban on Russian fuel
Post from www.cnn.com
European diesel prices have fallen despite the EU’s ban on fuel from Russia.
The European Union (EU) recently enacted a ban on the import of Russian fuel in response to the conflict in Ukraine. This ban, which went into effect on January 1, 2020, was meant to put pressure on Moscow. However, despite the trade limitations, diesel prices in Europe have fallen significantly over the past month.
Experts cite several reasons for this surprising trend. To begin with, global oil prices have dropped dramatically due to a reduction in demand caused by the coronavirus pandemic. This decrease in demand has resulted in a significant decrease in the cost of crude and subsequent fuels, including diesel.
Additionally, the loss of Russian fuel from the EU market has been replaced by alternatives from other large producers, such as Iraq, Iran, and Mexico. These countries are able to export fuel to Europe for cheaper prices, and this has helped to lower the price of diesel even further.
Finally, the EU has enacted measures of its own to soften the blow of the Russian fuel ban. Specifically, the EU has allowed its member states to raise the limit of fuel from other suppliers. This has allowed countries within the EU to buy diesel from other sources, which has added to the fuel glut, driving down prices further.
Overall, the fall in diesel prices in Europe has been surprising, given the EU’s ban on Russian fuel. The combination of lower global oil prices, increased supply from other sources, and political measures taken by the EU has all played a role in driving the price of diesel down. With the increased availability of options, it is likely that customers will benefit as diesel prices continue to fall in Europe.