EU Facing Diesel Crisis with Russian Ban Looming:

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“China policy is the game changer,” Williams told Bloomberg, adding that the country “holds the key to all of the surplus refining capacity globally.”

The EU could also use intermediary countries to get the fuel turkey, not being a member-state and thus not party to sanctions against Moscow, could raise imports of Russian diesel and sell it to the bloc after refining, which is allowed under the terms of the ban and price cap. However, the final cost of the fuel may be much higher in that case.

Experts warn that sanctions may result in Russian barrels disappearing from the global market altogether, if the country fails to find new non-EU buyers. This would force Moscow to slash production and, consequently, lower overall supply and drive up prices. Coupled with high demand, this could lead to a worsening of the energy crisis in the bloc.

“The higher the demand and the steeper the Russian diesel production decline, the more complicated and potentially fractured things could get,” Hedi Grati from S&P Global told the news outlet.

Source: RT