US restrictions affecting the activities of Rosneft and Lukoil have led to an increase in the average price of diesel fuel in the US, Bloomberg reported on November 15.
“The current increase in refining margins is due, at least in part, to uncertainty about the upcoming US sanctions on Rosneft and Lukoil, as well as the EU restrictions on Russian products since January“, the agency quotes Rebecca Babin, senior energy trader at CIBC Private Wealth Group.
According to Bloomberg, margins in the United States, Europe and Asia are at their highest levels since at least 2018. The source emphasizes that any serious disruptions to these exports could be a shock to the global market of fuels.
Previously, the US Treasury Department extended licenses authorizing certain transactions with Lukoil involving its foreign assets from November 21 to December 13, despite sanctions imposed by Washington.
In October, the EU Council approved a phased ban on all purchases of Russian gas, starting from January 1, 2028. The decision applies to both pipeline and liquefied natural gas. New gas contracts will be banned from January 1, 2026, short-term contracts must be completed by June 17, 2026, and long-term contracts can continue until January 1, 2028.
The European Parliament is pushing for an even stricter ban, demanding a halt to all Russian gas supplies to EU countries from January 1, 2027.
European Energy Commissioner Dan Jorgensen said the European Commission is also continuing to work on a plan to completely ban purchases of oil and nuclear fuel from Russia.