Bloomberg: The European Union faces a severe shortage of diesel

According to the report of the International Economic Group of Fars News Agency, quoted by Bloomberg, the European Union will face a severe shortage of diesel within a few months.

Bloomberg writer Jack Whittles quoted a report published by the Wood Mackenzie Energy Consulting Institute: Northwestern European diesel stocks will fall to the lowest level in twelve years at the beginning of spring.

According to the author, the energy situation in the European Union took a turn for the worse in February, when European leaders decided to cut off Russian fuel supplies.

Wood Mackenzie analyst James Barley has also emphasized that Russia is the only major supplier of diesel fuel to Europe by sea, and due to the sanctions against Russian oil tankers, the diesel crisis in the European Union is inevitable.

According to this report, another problem facing the European Union and the United States is related to the structure of futures markets. In particular, fast delivery of fuel is more expensive than the same fuel delivered over a slightly longer period of time. That would reduce storage and cause a severe diesel shortage, Whittles said.

Western countries are facing high energy prices and high inflation due to the imposition of sanctions against Moscow and Russia’s fuel exclusion policy. Following the increase in fuel prices, primarily gas, the industry in Europe has largely lost its competitive advantages, which has also affected other sectors of the economy.

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