Dark diesel days

Gas shortage. Electricity shortage. Fertiliser shortage. Metals shortage. Everywhere you look in Europe, it’s shortage after shortage. Now, another is looming large: a diesel shortage. And it won’t be an easy shortage to resolve.

In early December, the EU crude oil embargo against Russia will kick in. Two months later, it will be time for the fuels embargo. Guess what Europe is doing right now? Stocking up on Russian oil and fuels. Guess what Europe will be doing in two months? Looking for oil and fuels elsewhere.

Scene 1: Enter Middle Eastern OPEC.

“Europe will need to import oil products, mainly diesel, from regions such as the US, Middle East, India and other Asian countries,” Bloomberg reported last week in a piece focusing on the expected jump in tanker demand after the embargo enters into effect. Needing is one thing. Getting the diesel might be quite a different matter.