The roots of the problem go back to the beginning of the pandemic and the recession in 2020. Oil and gas prices fell so fast then that many producers, particularly in the U.S., simply stopped drilling
Washington , November 19 - Neftegaz.RU.
The US is reportedly getting ready to receive a bulk shipment of diesel from energy-rich Russia
as Washington strives to cool down the fuel's retail price, which has recently hit its highest level since 2014, RT
Some 2 million barrels
of Russian diesel carried by 4 tankers are currently heading to the east coast of the US, according to data from energy cargo-tracking agency Vortexa, as quoted by Bloomberg.
The delivery, which is expected to arrive in New York
and New Haven, Connecticut, as soon as next week, is reportedly the most substantial in recent years, based on data going back to 2018.
Vortexa analysts highlighted that Russian producers have been ramping up production of a diesel that is dependent on a feedstock extracted from costly natural gas
Flows from the Russian Baltic port of Primorsk are reportedly expected to reach their highest level since at least 2016.
Clay Seigle, a managing director for Vortexa in Houston told the agency:
- Russia is better positioned to supply diesel than other refiners in Europe because of its access to cheap natural gas
It’s very rare we’d see volumes this large coming to the East Coast
Retail prices for diesel in the US East Coast have soared to being the costliest in 7 years, with distillate inventories in the region down by nearly a 3rd from levels recorded earlier this year.
for the fuel is expected to further grow as logistics companies are intensively working to catch up on backlogs that built up due to the coronavirus pandemic