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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
OIL PRODUCTS
Russian diesel closed yesterday at just $5.50/bbl below the G7 price cap of $100/bbl according to Argus assessments – potentially risking flows being tied up by logistical and insurance bottlenecks if breached.
- European diesel cracks have been volatile since the Russian invasion of Ukraine, swinging wildly between $20 and $60 per barrel.
- Switching from short haul Russian to longer haul alternative supplies has made European buyers prone to greater import supply uncertainty.
- More recently cracks have widened to $30, their widest since the G7 price caps were introduced in February.
- If Russian flows are constrained by the price cap – Europe risks facing more competition for its alternative supplies it is targeting to replace Russian volumes.
- US flows of diesel to Europe are at over 4.5 year highs in July of 1.14mn tons according to Kpler and Vortexa figures as a key supplier in the Russian sanction era.
- US flows that usually head to South America have been displaced by discounted Russian barrels – which used to head to Europe.
source: Argus
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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