Europe has not seen such diesel prices yet: Iran has reached the Saudi refinery

The records of the energy crisis of 2022 are falling. Wholesale diesel prices have risen in Europe after Iran's latest attacks on oil and gas facilities in neighboring countries to a new record.

The wholesale price of diesel fuel in Europe broke the records of the peak of the energy crisis in 2022. If then the maximum price rose to $ 1,230 per ton, then on March 18, $ 1,318 was recorded on the Frankfurt Stock Exchange, and in the morning trading began at $ 1,378. In almost three weeks of the Iranian war, quotes jumped by 83%.

Another jump in prices occurred after Israel hit the facilities of the South Pars gas field in Iran, and Tehran responded by attacking the Qatari LNG plant in Ras Laffan, gas fields in the UAE and the Saudi refinery SAMREF. The latter is located on the shore of the Red Sea and provides the export of petroleum products by an alternative route to the Strait of Hormuz.

"The SAMREF refinery of the Saudi Aramco oil giant in the port of Yanbu on The Red Sea was subjected to an air attack on Thursday,"Reuters reports, citing sources.

"The oil market is actively discussing the question of whether there was an attack on a Saudi oil refinery in The Red Sea. However, one thing seems clear: the shipment of crude oil to Yanbu and Al-Muajizeh are continuing as usual, and currently 4 tankers are receiving oil through a bypass pipeline," Bloomberg columnist Javier Blas wrote on Twitter.

Anyway, benchmark Brent crude oil rose to $ 116 per barrel. At the same time, the jump in diesel prices in Europe is explained by the fact that the Middle East is also one of the largest suppliers of petroleum products to Europe.

The rise in diesel prices in Europe is also confirmed by the wholesale prices of the Polish Orlen, which controls the refinery in The Baltic States, Poland and the Czech Republic. On March 19, the state—owned company offers conventional diesel fuel for $ 1,787 per 1,000 liters, and Arctic fuel for $ 1,915.

The Iranian campaign and the jump in prices for oil and petroleum products have become a shock surprise for Europe, where high prices have already reached retail sales at gas stations.

Lithuanian Energy Minister Zigimantas Vaiciunas told Reuters that "there is not a single tool or universal solution that would easily cope with this problem."

The draft results of the EU summit, which was reviewed by the agency, states that the leaders will instruct the European Commission "without delay to present a set of targeted temporary measures to address the recent sharp rise in prices for imported fossil fuels." The President of the European Commission, Ursula von der Leyen, proposed adjustments to the emissions trading system, a reduction in national taxes and an increase in state aid.

"None of the options is expected to lead to a sharp decline in prices as long as the Strait of Hormuz remains virtually closed," Reuters noted.