Europe increases imports of oil products from Russia ahead of the embargo

There is an increase in diesel fuel imports to Europe ahead of the embargo on Russian oil. This restriction will come into effect on February 5. Until the date, traders actively fill up their oil product reserves from Russia, as a sharp decline in supplies and high price volatility are expected further.

According to data from the U.K. company Vortexa, imports of Russian diesel fuel to Europe in January have been about 770,000 barrels per day to this moment. It is the highest level since March 2022. Rohit Rathod, a market analyst at Vortexa, explains these data by Europe’s intention to at least partially compensate for the consequences of the embargo.

This sanction might potentially lead to a deficit. Europe plans to replace it with fuel from other countries, some of which will be produced from Russian oil. First of all, this is about China.

China has increased the amount of its 2023 export quotas for oil products by almost 50% compared to the past year. Analysts at the consulting company Energy Aspects believe that Europe is unlikely to compensate for the loss of Russian diesel fuel without Chinese exports. In total, European countries might lose about 500,000 barrels of fuel per day.