Global diesel fuel prices have risen by 32% in the last three weeks, and due to the ongoing Middle East conflict, diesel fuel prices in Europe remain volatile.
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“Due to the military conflict, Europe has practically completely lost the opportunity to receive energy resources from the Persian Gulf region, so we can talk about a continuous diesel fuel import deficit, which has been ongoing for four months. As a result, diesel fuel stocks in the Amsterdam-Rotterdam-Antwerp (ARA) port region are the lowest in the last four years,” said Indrekas Sassi, Head of Motor Fuel Pricing at Circle K Estonia.
At the same time, diesel fuel demand in Europe has sharply decreased, which helped reduce the import shortage. In March-April, its demand in Germany was almost 15% lower than a year ago, and in May, Italy and France consumed 12-13% less diesel compared to the same period last year. The decrease in demand is due to both the rise in diesel fuel prices, which reduces consumption, and a growing trend among European consumers to switch from diesel cars to petrol, electric, or hybrid vehicles.
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The global oil market also remains in turmoil and uncertainty about the future. In their latest forecast, Goldman Sachs analysts warn that crude oil prices could rise to $120 per barrel by the end of the year if the military conflict in the Middle East escalates, leading to the Strait of Hormuz remaining closed for a long time.
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