London Daily

Focus on the big picture.
Sunday, Jun 01, 2025

Anxious Europe buys up diesel ahead of Russian import ban

Anxious Europe buys up diesel ahead of Russian import ban

Fears of a supply shortage are easing after diesel imports to Europe soared to a record high in December.
European countries imported unprecedented quantities of diesel fuel in December as buyers rush to secure supplies ahead of an EU ban on Russian oil products.

According to analysis by the Refinitiv market data firm, shared with POLITICO, diesel imports to the European region soared to a record 8.2 million tons in December.

Before the war in Ukraine, Russia typically supplied more than half of the EU’s imports and around 10 percent of its total demand for diesel — a vital fuel for road vehicles, trains and shipping as well as industrial and agricultural machinery. Imports of all Russian petroleum products, including diesel, will be banned by the EU from February 5 in one of the toughest sanctions yet against Moscow, aimed at squeezing the fossil revenues Vladimir Putin uses to finance his war against Ukraine.

The ban had prompted fears of a diesel supply crunch in the EU in the dead of winter, at a time when consumers are already suffering from high inflation and industries are feeling the burden of sky-high energy prices. But the recent glut of imports will likely mean any problems will not be felt in the immediate aftermath of the diesel ban, market analysts said.

“In the immediate future there won’t be a crunch,” said Raj Rajendran, a lead analyst at Refinitiv, part of the London Stock Exchange Group. “Europe has bought huge amounts of diesel to build up inventories as a safety net which is providing some reassurance to get through this winter. Current warmer weather is also reducing heating oil demand.”

The European region in Refinitiv’s analysis includes both Turkey and the U.K., although the U.K. stopped importing Russian diesel some months ago.

The record imports in December include significant, last-minute EU purchases of Russian diesel, which are continuing into January, according to Refinitiv’s analysis. European countries and Turkey imported 3.51 million tons of diesel from Russia in December.

Germany was the EU’s biggest importer of Russian diesel, bringing in 604,000 tons in December, the most since May 2020. Imports also surged from alternative suppliers in the Middle East, as well as from India and China, where low economic activity due to COVID has driven down domestic demand and forced Beijing to allow refiners to export more diesel.

Kuwait and Saudi Arabia have emerged as the major alternative exporters, likely to replace at least some Russian diesel supplies once the ban comes into effect, said Claudio Galimberti, from energy research firm Rystad.

“Europe’s shortfall will be close to half a million barrels of diesel,” said Galimberti, adding that the EU lacked the refining capacity to fill the gap. Europe will therefore have to rely on imports from alternative sources to Russia. Fears of an actual shortage of diesel are dissipating, however. “We are not in a situation where we are going to run dry in areas of Europe,” Galimberti added. “But the price of diesel could go even higher than it has been in this past year.”

Rajendran agreed. “The concern could come in spring, in the second quarter. If [diesel] inventories drop significantly, there will be huge pressure on prices.”

Raluca Marian, director for EU advocacy at road transport lobby IRU, which represents more than 170 companies, said prices were “stable” at the moment. “We can’t exclude problems, but it won’t be a general shortage,” she said.
Newsletter

Related Articles

0:00
0:00
Close
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
×