The world’s biggest importer of diesel exclaims over the price of diesel arising from the energy crisis caused by the Russia-Ukraine conflict. The country sends a warning threat of the pain the drivers face due to this unprecedented rise in the price of the diesel.
The prices of fuel in France have overtaken those of gasoline for the first time in recent years, according to the International Energy Agency, which is based in Paris and advises most major economies. Therefore, the agency’s refining analyst, Kristine Petrosyan, stated that this rare crossover in the prices of the two products imply that the supply chain of the diesel inflow is disrupted.
The recent market moves indicate that traders fear a looming shortfall in diesel, a major product imported by Europe from Russia. And, Russia is being gradually pushed out of the global energy market due to the sanctions imposed as a form of retaliating its attack on Ukraine. Thus, this triggers major concerns about the supply disruptions of energy products.
The price of diesel in the northwest Europe surged on Monday to the highest in at least 30 years reaching $1,369.50 a ton. The premium for prompt deliveries of the motor fuel surged as high as $85 a ton on Friday, 4th March 2022, the highest value from as far back as early 2008.
Although, no evidences of supplies running out has emerged yet, the International Energy Agency said. The U.S. intention to escalate its campaign in Moscow might cause further supply disruptions.
