Europe could face fuel rationing amid a shortage of diesel following the invasion of Ukraine, the heads of three of the largest commodity traders have warned.
Vitol, Gunvor and Trafigura issued the stark assessment after estimating sanctions imposed on Russia could see as much as 3m barrels of oil and oil-related products lost per day.
Half of European diesel imports come from Russia while the UK relies on the country for 18 per cent of its diesel consumption.
Rationing threat: Half of European diesel imports come from Russia while the UK relies on the country for 18% of its diesel consumption
Russell Hardy, chief of Swiss oil trader Vitol, said: ‘The thing that everybody’s concerned about will be diesel supplies. That systemic shortfall of diesel is there.’
Hardy, who was speaking at the FT Commodities Global Summit, also acknowledged the possibility of rationing fuel. Shipbrokers have said that Russia’s declining diesel exports have increased the prospect of global refineries attempting to profit from soaring prices.
Torbjorn Tornqvist, co-founder and chairman of Geneva-based Gunvor Group, said: ‘Diesel is not just a European problem. This a global problem.’
Amrita Sen, chief oil analyst at Energy Aspects, said that ‘diesel is by far the worst affected’ of the products.
Jeremy Weir, chief executive of Singapore-based Trafigura, pointed towards the growing absence of Russian oil from the global market. He said: ‘The diesel market is extremely tight. It’s going to get tighter.’
UK diesel pump prices have risen 40 per cent over a year to a record-high 176.76p per litre, the RAC has said.
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