The US announced a drop in imports of Russian diesel fuel to the EU by 96%

The countries of North-Western Europe have replaced the volumes of diesel fuel supplied from RUSSIA by increasing imports from Saudi Arabia, India, CHINA and SOUTH KOREA, the Energy Information Administration of the US Department of Energy (EIA) said in a statement.

According to the agency, after the introduction of sanctions against Russian oil products on February 5, imports of diesel fuel from Russia by sea decreased from 53 to 2% of all imports to North-Western Europe, that is, by 96.2%. Against this background, deliveries from other regions increased significantly.

According to the EIA, the largest increase in diesel fuel imports to the EU came from Saudi Arabia: in February, deliveries from the kingdom amounted to 202 thousand barrels. per day, while from October 2021 to September 2022, an average of 68 thousand barrels went from there. per day. India also increased exports from 110 thousand barrels. per day on average for the same period up to 161 thousand barrels. per day in February 2023.

EIA analysts note that China and South Korea, which previously were not regular exporters to Europe, also increased supplies. In February, the volume of deliveries from these countries amounted to 119 thousand and 45 thousand barrels. per day, respectively. Imports from the US increased to 107 thousand barrels. per day (from October 2021 to September 2022, it averaged 43 thousand barrels per day).

“Although diesel prices have come down in NW Europe, the loss of Russia as a major supplier means it will have to import fuel from more distant regions. Uncertain supply and demand dynamics, as well as new circumstances related to the import of diesel fuel into Europe, may lead to price volatility,” the EIA said in a statement.

Before the start of the military operation in Ukraine, Russia was the largest supplier of fuel to Europe. However, after the EU embargo on Russian oil and oil products and Moscow's retaliatory measures, which banned the supply of oil and oil products to individuals and organizations with a price limit in contracts, Russian energy exports fell sharply.

In January, BLOOMBERG wrote that against the backdrop of anti-Russian sanctions, China is rapidly increasing exports of diesel fuel to the EU. According to the agency, shipments from China in December reached the highest level since at least 2016. Bloomberg also pointed to an increase in supplies from India and Saudi Arabia.

As follows from the Refinitiv data cited by REUTERS, only in February Russia shipped at least 190,000 tons of diesel fuel to the ports of Saudi Arabia. According to traders interviewed by Reuters, Russian diesel after processing will be re-exported to other countries.

At the same time, The Wall Street Journal wrote about North Africa's "insatiable" buying of oil products from Russia, which could also then be re-exported to the EU. The ports of North Africa have become an “ideal place” for Russia to EXPORT sanctioned products, since Russian ships coming from the Baltic Sea spend slightly more time on their way to them than to ports in Europe, WSJ journalists noted.