(MENAFN) According to recent findings from energy analytics firm Kpler, the volume of Russian diesel held in floating storage at sea has surged to its highest levels since at least 2017. Bloomberg reported on Friday that over a ten-day period leading up to March 17, an average of 6.2 million barrels of Russian diesel was observed on tanker vessels. This significant buildup surpasses levels seen in early 2023, coinciding with the European Union's imposition of a ban on Russian oil and petroleum product transportation by sea.
The spike in diesel stockpiling at sea has reached levels not witnessed since the onset of the Covid-19 pandemic in 2020, when global fuel demand plummeted. Despite the absence of a clear explanation for the glut, Bloomberg speculates that heightened enforcement of United States sanctions targeting Russian oil exports may be contributing to the buildup.
In response to the Ukraine conflict, the European Union, G7, and allied nations initiated stringent measures, including an embargo and a USD60-per-barrel price cap on Russian crude, along with restrictions on petroleum product exports, beginning in December 2022. The recent escalation of sanctions, particularly targeting Russian crude, has intensified in recent months. This includes the blacklisting of intermediaries and individual vessels, including those operated by Sovcomflot, Russia's state-owned tanker company.
The abundance of Russian diesel in floating storage underscores ongoing disruptions and shifts in global energy markets amidst geopolitical tensions and regulatory actions. As uncertainties persist, stakeholders continue to monitor developments closely, navigating the complexities of energy supply dynamics and international sanctions regimes.
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