The world’s largest energy traders expect gas stations to close

The world’s largest energy traders expect gas stations to close

While the world has been obsessed with crude oil and gasoline in recent weeks, some experts have instead warned of a far worse scenario playing out with diesel fuel, an energy source that is absolutely essential to keep the world “just in time.”

The warning was echoed by the heads of one of the largest commodities trading houses and the largest independent oil trader speaking at the FT Commodities global summit in Lausanne, Switzerland on Tuesday.

Corporate executives have calculated that Russia could lose up to 3 million barrels of oil and petroleum products a day as a result of the sanctions, in line with previous estimates, and warned that global markets will face diesel shortages, with Europe most at risk of a “systemic” shortage that can lead to fuel rationing.

“Everyone is concerned about the supply of diesel fuel. Europe imports about half of its diesel from Russia and about half of its diesel comes from the Middle East, said Russell Hardy, head of Swiss oil trader Vitol. “This systemic diesel shortage.”

These imports mean that Russian supplies account for about 15% of diesel consumption in Europe.

Meanwhile, it has become clear that Russia is closing the oil terminal near Novorossiysk (Black Sea) for two months due to repair work caused by the storm.

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