The expert assessed the impact of the release of diesel reserves in Europe on the market and Russian exporters

An expert from the Financial University under the Government of the Russian Federation and the National Energy Security Fund, Igor Yushkov, in a conversation with NSN, commented on the situation with the release of strategic diesel fuel reserves in Europe. According to him, this decision, made under pressure from the United States, will create additional financial burdens for the European market in the long term, but in the future it may turn out to be beneficial for Russian exporters.

Thus, the analyst assessed the statement of US President Donald Trump that European countries agreed to immediately begin releasing significant volumes of diesel from their reserves. Earlier, the American leader mentioned the possibility of introducing a ban on the export of petroleum products from the United States as a measure to stabilize the domestic fuel market.

“Trump really openly blackmailed Europe in many ways. He threatened them that if they did not release diesel from their reserves, he would ban the export of petroleum products from the United States,” Yushkov noted.

According to the analyst, this approach allows the American administration to help lower prices in the global and domestic markets without having to make concessions to Iran to ensure shipping in the Strait of Hormuz or put direct pressure on Ukraine to stop attacks on Russian oil refineries. Thus, the main costs of stabilizing the market fall on the European side.

In the short term, this measure may lead to a slight stabilization of prices, but the very fact of the need to open strategic reserves indicates a tense situation in the market. The expert predicts that in the long term this will lead to an increase in prices for oil and petroleum products. After current reserves are depleted, European countries will have to purchase fuel not only for current consumption, but also to replenish reserves. According to Yushkov, this will guarantee the United States an additional market, but will ultimately increase the overall costs of Europe.

As for the Russian market, at present the described processes do not have a significant impact on it, since the Russian government has extended the ban on the export of diesel fuel until the end of October. However, the analyst considers this situation potentially favorable for Russia in the future. By the time export restrictions are lifted, strong demand from Europe, which is forced to replenish its reserves, is expected to keep global diesel prices high, allowing Russian suppliers to benefit economically.

Earlier it became known that the White House was discussing introducing a ban on the export of diesel fuel from the United States for a period of 90 days in order to bring down record-breaking prices on the eve of the November midterm elections. Experts pointed out that such measures could lead to a sharp jump in prices in Europe.