Written by Tyler Durden
European diesel prices have increased A 5th session in a row, driven by increasing concern that critical shipping routes in the mediate East may be blocked. The conflict between Israel and Iran has sparked an alarm across the EU, which has become an emergency since the failure of access to Russian supplies increasingly dependent on the transport of fuel passing through the Strait of Ormuz.
"Concerns about safety of supply drive a sharp emergence in diesel prices in Europe" – he said Bloomberg Eugene Lindell, head of refined products at FGE NexantECA consulting company. "Many importers are now in a hurry to replenish their stocks in the event of prolonged disruption due to the possible blockade of the Ormuz Strait" – he added.
Here. key strengths in the European diesel market resulting from concerns about the blockade of Ormuz:
The oil premium for oil jumped above $25 per barrel, at most since March 2024.
Backwarding rapidly expanded, with July diesel presently being $21.25 per tonne higher than in August, and December 2024 45.25 per tonne higher than in December 2025 – compared to just 0.50 USD 9 June.
Traders threw themselvesto unscrew the bear bets, closing more than 100,000 diesel futures, most in 4 days from 2021.
According to Bloomberg's estimates, Europe imported last year through the Strait of Ormuz About 850 000 barrels a day of diesel. It's a critical sea crossing that makes Europe is very susceptible to regional instability and possible supply disruptions.
Europe has become more susceptible to interference in Ormuz Strait increased structural dependence, limited local refining capacity and reorganization of deliveries after Russia:
Europe has banned imports of Russian diesel After invading Ukraine, cutting it off from the largest and most reliable supplier.
As a result, Europe has moved heavy to the mediate East, especially the United arabian Emirates and Saudi Arabia, to fill this gap – most of these supplies pass through Ormuz.
