Europe yet to give up Russian diesel

The continent is loath to tackle its dependence upon imports of Russian refined products

The crack spread—the theoretical margin between buying crude and selling the refined product—for European diesel is at record highs. While this would not at first glance be a surprise, given the continent has been highly dependent on Russian supply, the physical diesel balances remain healthier for now than the record cracks would indicate, says Pamela Munger, senior analyst at energy analytics firm Vortexa. There has not been a decline in diesel flows from Russia to Europe so far, and Europe remains well-supplied, Munger continues. Russian loadings of diesel heading for Europe shot up in late February and then into March, before dipping slightly to levels comparable to the start of the year