Europe lacks fuel oil and diesel fuel to fully replace gas

Europe lacks fuel oil and diesel fuel to fully replace gas


Most European enterprises plan to use fuel oil and diesel fuel to reduce gas consumption in the coming winter. In some cases, it’s about burning fuel oil in boilers and steam generators previously fired with natural gas; in others, it’s about running diesel generators to avoid electricity blackouts.


However, the European business may face a shortage of fuel oil and diesel fuel. Stockpiles of diesel fuel in NW Europe will decline this November to their lowest level since 2011. Moreover, oil reserves in independent storage in the Amsterdam-Rotterdam-Antwerp oil trading hub are at their lowest for a season since 2008. 


Europe is structurally short of of diesel fuel, regularly receiving cargo from overseas. The natural shortage could become even more of a problem early next year when an EU ban on seaborne imports from Russia, currently the continent's largest external supplier, comes into effect.

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