The export of diesel fuel from Russia promises to be a record for the last seven years, starting from 2016. Instead of the EU, the resource is exported to Turkey, Morocco, Brazil, Tunisia and Saudi Arabia.
Previously, the EU was the largest diesel fuel market for the Russian Federation – it accounted for at least 40% of sales, but the ban on the import of Russian oil products, introduced in early February, and with it the price ceiling for third countries, were marked by a reorientation of Russia to other trading arenas.
According to Vortexa, in the first 19 days of March this year alone, the average daily supply of diesel fuel abroad amounted to about one and a half million barrels. At this pace, the Russian Federation is preparing to demonstrate the maximum performance over the past few years.
Meanwhile, the cost of transporting oil products between the US and the EU, as well as in the Mediterranean Sea, is rapidly creeping up due to a shortage of tankers. Shipowners send ships to transport the Russian resource, as this brings much more profit. Vessels move from the Baltic and Black Sea ports towards West Africa and the Middle East, as well as to South America.
“Ship owners have seen better earnings outside of Europe. In Northern Europe, there was an unexpected shortage of tankers, and shipping rates between Rotterdam and New York rose by 40%,” broker Clarksons Securities said.
The situation significantly affects the transportation market in the Mediterranean. According to broker Banchero Costa, sometimes freight rates nearly double in just a few days, reaching $43,000.
Last summer, ship brokers predicted a critical shortage of tankers on the market after the introduction of sanctions against the Russian Federation on oil and oil products. The main reason is that both Russia and the EU will have to resort to using longer routes for sending or delivering oil products, and this, in turn, will require a much larger number of ships.
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