(MENAFN) According to Reuters, the European Union is entering winter with seasonally low levels of diesel in storage tanks, raising serious concerns for the region's drivers and industries in light of impending sanctions on Russian crude oil and refined product imports.
Based on the most recent Wood Mackenzie data, the region's stockpiles of road diesel, heating oil, and other diesel-type fuel are set to fall to the lowest levels ever recorded in data dating back to the beginning of 2011.
A Reuters report claims that because current prices are higher than those for upcoming deliveries, it is unprofitable for traders to store diesel. “No one in their right mind would put diesel into tanks at those levels,” an unnamed European trader informed the source.
The situation is getting worse because the market is already constrained as a result of Austria's refinery outages, and Austria, along with Germany and Switzerland, is trying to stockpile heating oil in preparation for the upcoming winter.
In the meantime, FGE Energy cautions that rising natural gas prices, which are promoting a switch to oil-based products for power generation, could also further tighten the market.
MENAFN13082022000045011137ID1104692117
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.