Durden wrote that prices in Europe jumped at the threat the measure would aggravate already dwindling global supplies. "The world's oil refiners are struggling to produce enough of the fuel amid curbed crude supplies from Russia and Saudi Arabia. Of course, this means that refiners are going to push prices sharply higher and – in the parlance of Joe Biden's handlers – will print money again," he added. "Despite this being only a temporary ban, the impact is significant as Russia remains a key diesel exporter to global markets," Alan Gelder, vice president of refining, chemicals, and oil markets at consultancy Wood Mackenzie Ltd., stated matter-of-factly. "The global refining system will struggle to replace those lost Russian volumes at a time when global diesel inventories are already at low levels." Moreover, Eugene Lindell, head of refined products at consultancy FGE said that this ban is "a super big deal." But for him, Russia won't be able to keep up a diesel export ban for long, because they'll soon run out of tank space. In northwest Europe, the premium of benchmark diesel futures to crude oil, otherwise called the ICE Gasoil crack, had an upsurge at more than $37 a barrel at a pace of the highest level for 2023. Meanwhile, diesel futures for delivery in October also grew more expensive relative to barrels for arrival the following month, with backwardation surpassing $35 per ton. Brent has also spiked, reversing almost all of yesterday's losses. In effect, what Russia is doing by halting exports of products, is exporting higher prices to Europe. (Related: Russian petroleum exports SURGE despite increase in domestic demand.)Putin decided the ECB needs a few more rate hikes pic.twitter.com/J1XJicVrGZ
— zerohedge (@zerohedge) September 21, 2023
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