Europe will have a big problem with a shortage of diesel
Europe will have a big problem with a shortage of diesel from January, which will last for several months, maybe years, says Slovnaft CEO Oszkár Világi. An EU embargo on Russian crude oil has been in place since Monday and the embargo will be extended to Russian diesel from February 5. Russia covers 10% of the EU's diesel consumption and fears of a shortage are already pushing up its price. The EU will have to offer higher prices to divert supplies from the US and the Middle East. Once new production capacity is built in the West, though, Russia will have a hard time finding alternative buyers for its output.