Record Gasoil Premium Hits Europe Amid Refining Disruptions

The European premium for low-sulphur gasoil over crude oil has reached a record $74.66 per barrel, according to Reuters.

This comes as attacks and shutdowns in Russia and the Middle East reduce refining capacity, rather than a simple shortage of oil in the ground.

Europe does not buy crude oil for transportation or heating; it buys refined products like diesel and gasoil. When refineries cannot turn available crude into enough of these products, their prices rise independently of the crude price.