January 27, 2023 14:32 GMT
EU Proposed Cap Below Estimated Russian Diesel Price
Gasoil futures and curve backwardation are strong but holding steady ahead of the EU ban on Russian oil products from next week.
- The European Commission proposed on Thursday introducing a $100/bbl cap on Russian products such as diesel and a lower cap of $45/bbl for discounted products such as fuel oil. The proposed cap which would impose the limit on access to EU and G7 services is aiming to be implement to start in line with the EU ban on 5 Feb.
- Russia is still the biggest supplier of diesel to Europe so far in January ahead of the ban. Europe is attempting to source alternative supplies from areas such as the Middle East, US and China.
- Russian diesel was assessed at a 15.2$/bbl discount to non-Russian diesel on 10 Jan according to S&P Global.
- Gasoil FEB 23 up 0.1% at 965.75$/mt (129.6$/bbl)
- Gasoil FEB 23-MAR 23 down -0.25$/mt at 22.5$/mt
- Gasoil JUN 23-DEC 23 up 2.5$/mt at 47.75$/mt
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