The European Union is significantly ramping up its imports of diesel fuel and aviation kerosene in preparation for the winter season and in response to plans to restrict supplies of petroleum products made from Russian oil. According to analysts, imports of these types of fuel to the EU could reach record levels in October.
This is reported by Finway
Record Import Volumes and New Sanctions
According to data from Kpler, from October 1 to 20, nearly 1.9 million barrels of diesel fuel and aviation kerosene arrived at EU ports from exporters in India, Saudi Arabia, and the United States. If this pace continues until the end of the month, the total volume of purchases will set a new record. This activity is explained by preparations for increased demand for heating during the cold months and uncertainty regarding future EU restrictions.
“The plan to limit fuel purchases from Russian oil refiners threatens to destabilize the EU’s energy supply, potentially causing a further reshaping of flows during the peak demand for heating in the cold months.”
Impact of Sanctions and Market Factors
Additional pressure on the market arose after the United States added Russian energy corporations Rosneft and Lukoil to its sanctions list. Senior executives at Indian refineries, which are key buyers of Russian oil, stated that the new U.S. sanctions practically make further supplies to major refiners impossible.
In addition to sanctions, the situation is influenced by planned and emergency shutdowns of refineries in Europe, which reduce domestic fuel stocks. Rising fuel prices create opportunities for traders to profit from so-called “open arbitrage” — the price difference between markets. Uncertainty regarding restrictions that will come into effect in the EU in January further stimulates active fuel imports to European countries.