The large amount of Russian diesel fuel stored on ships suggests that buyers are avoiding it because of the sanctions.
Western sanctions and a warm winter have weakened demand for Russian diesel fuel, so a large amount of it is stuck in ships at sea, writes Bloomberg.
It was noted that 1.9 million barrels (about 260 thousand tons) of Russian diesel fuel are now in floating storage, which is the largest volume since October 2020.
The increase three weeks after the entry into force of the EU sanctions indicates that some cargoes were loaded from Russian ports without buyers.
Scarcity fears prompted European refiners to boost production to prepare for a warmer winter as suppliers imported massive amounts of fuel ahead of an EU ban on imports from in Russia.
According to some reports, diesel fuel stocks in the Amsterdam-Rotterdam-Antwerp hub have risen to the highest level in two years.
The continued build-up of diesel fuel in Russia, which is floating unsold at sea, may affect the rate of crude oil processing and production.
It was previously reported that Russia’s revenues from oil and gas exports fell by nearly 40% in January due to sanctions and price restrictions from Western countries.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.