The European Union is heading into winter with seasonally low levels of diesel in storage tanks, Reuters reported on Friday, warning of major implications for the continent’s industries and drivers amid looming sanctions on Russian crude oil and refined product supplies.
The latest data from Wood Mackenzie shows the region’s stockpiles of road diesel, heating oil and other diesel-type fuel are set to dwindle this November to the lowest levels on record in data that goes back to the start of 2011.
According to a Reuters report, current prices trade at a premium to prices for future deliveries, which makes it uneconomical for traders to put diesel into storage and book a profit. “No one in their right mind would put diesel into tanks at those levels,” an unnamed European trader told the outlet.
Continue reading “EU in for another winter shock”
