European diesel

European diesel


As the most consumed refined product in Europe, diesel is a fundamental source of road fuel. But without sufficient local refining capacity to cover demand, the region is dependent on imports of this critical product. These trade flows have changed dramatically since the start of 2022 as Europe rejects Russian-origin oil and turns to long-range cargoes from other sources.

This ‘new normal’ requires new price benchmarks for the European diesel market.

European diesel price map

Key Prices

Argus provides a price solution for long range 2 (LR2) diesel cargoes 90,000-100,000 tonnes of restricted origin. These prices represent today’s changing market and bring transparency to the prices of distillate flows into Europe, enabling you to navigate the market, manage risks and make well-informed decisions.
Get a snapshot of our European diesel prices each week, direct to your inbox. Sign up here.
Argus global diesel forecast map

Trade flows: Alternative diesel sources for Europe

Traditionally, 50-60pc of Europe’s diesel imports came from Russia as part of term supply contracts but this will no longer be an option as the regulatory ban enters into effect in 2023. Therefore, alternative flows of diesel imports will grow in importance to address the shortage of diesel in the European market. These alternative flows will primarily come from Saudi Arabia, the UAE, India and the US. How much can each key diesel trade route grow? View the forecast from our consulting team for supply and demand balances for each region

Featured content

  • Publications

    2023 – a year of oil market dislocation?

    Uncertainty for the oil market is expected to continue into the new year. A key concern is diesel — even after 10 months of self-sanctioning, Europe continues to import 600,000 b/d of Russian diesel. Where will Europe source its diesel and where will Russian supply be redirected to?
  • Publications

    Blog post: Europe is looking at a diesel supply crisis — unless demand goes first

    The EU sanctions on track to ban Russian oil from this winter onward will impact diesel more than anything else. Prices are likely to go so high that demand for the fuel gets squashed. That is, if the recession has not already destroyed that demand.
  • Publications

    FAQ: Argus pricing solutions for non-Russian diesel cargoes coming into Europe

    The European diesel market is going through one of the largest changes seen in recent years, with market participants seeking to avoid and diversify away from Russian-origin oil.
  • Publications

    Viewpoint: Europe diesel supply set to outshrink demand

    Europe enters 2023 with demand for diesel waning as high energy prices and rampant inflation take their toll on the region's economic growth prospects. But the drop in consumption is likely to be outpaced by constraints on supply as Russian imports dry up, supporting European diesel margins in the first quarter of the year.
  • Publications

    Viewpoint: Product tankers to get European diesel boost

    EU sanctions on Russian oil products will create unprecedented market dynamics in 2023, which could boost European clean tanker rates.

Podcasts

13 December 2022

Driving Discussions and the Weight of Freight: Why 2023 will be a year of change for diesel shipping

European distillates’ demand will shape the global flows and the shipping market, which is to become a central element for the supply of Diesel into Europe, particularly from February 2023 onwards, once Russian Diesel is phased out.

Filter:

Russian English Freight & Transportation

18 November 2022

Driving Discussions: Rocky waters for diesel markets

What is the impact of the Russian Diesel phase out in Europe? And what are the consequences to the global shipping market?

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Europe Russian English Oil products

15 September 2022

Driving Discussions: Sanctions are coming: Diesel market outlook

How will high prices impact European diesel demand? What is the outlook for diesel prices?

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Europe Crude oil English Global North America

19 May 2022

Driving Discussions: Will Russian diesel be phased out of the market?

The European diesel market continues to struggle as we see steep backwardation, lack of liquidity and more companies adding self-sanctions against the use of Russian barrels.

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Oil products FSU Europe English Global

23 February 2022

Driving Discussions: The bumpy road ahead for European diesel prices

The European distillates market, in particular the diesel market, has been going through challenging times due to loss of some refining capacity.

Filter:

Oil products Europe English
View all the podcasts from the Driving Discussions series here

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