US Diesel Threat Spurs European Reserves Sale
The energy market has experienced a slight reprieve after the US threatened to stop diesel fuel exports to Europe, prompting Brussels to agree to sell part of its strategic reserves.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that the main issue in the energy market is no longer related to crude oil supplies but rather the supply of petroleum products, which are limited by reduced refinery capacity and production volumes in the Middle East and Russia.
The White House's threat led to a drop in oil prices, with the North Sea Brent benchmark falling from $104.4 per barrel to $102.2 over the week.
Russia extended its export ban on fuel for another month, but at the same time, oil supplies from the Persian Gulf region have accelerated, including through pipelines bypassing sea routes.