Europe "spoiled" diesel prices for Ukraine

The shortage of diesel fuel in Northwestern Europe and the high demand in Romania has led to an increase in diesel prices for Ukraine.

"Prices have risen due to the higher cost of fuel at sea. In addition, the Polish Orlen submitted its proposals late, which made the market a little nervous," one of the traders told enkorr. Another said that there was a stir in the Polish direction, in particular due to the fact that Ukrnafta was actively buying volumes.

As a result, margins rose to $ 62-63 per ton.

The situation in the south of Ukraine also contributed to the price increase.

"In the second half of July, traders in Constance suffered from low water in the Danube, which hampered supplies to the south Ukraine. But then the Romanian market revived, where consumers actively raked in volumes before the increase in excise taxes and VAT," writes enkorr.

Premiums rose to $39-45 per ton.

The publication notes that the August purchases took place in conditions of limited supply of resources and high demand in Romania.

"Prices in Northwestern Europe indicate that the shortage will disappear in August," said Jamie Linares, analyst for medium distillate markets at OPIS.

European companies are counting on large supplies from the United States and the Middle East.