Dark ship-to-ship transfers keep Russian oil flowing despite sanctions
Oil Markets
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Russian Diesel Flows to the European Market
The EU can't touch Russian diesel because of the sanctions, although there is some debate over how effective they are. So with Russian material being priced at a discount to regular imports in Latin America, this has opened the arbitrage from the US Gulf Coast to Europe. The situation is definitely contributing to the weakness in the diesel complex we're seeing at the moment, with demand too weak to absorb such large volumes. But let's not forget, there was a price gap introduced in December 2022 but it doesn't really seem to have got much traction,.
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