The Russian government has temporarily bannedexports of gasoline and diesel to all countries apart from Belarus, Kazakhstan, Armenia, and Kyrgyzstan, in order to stabilize runaway fuel prices that have been hitting record highs almost every day in September.
Russia’s decision to ban fuel exports for an undetermined period boosted diesel prices again, with Europe seeing a whopping $45 per metric tonne day-to-day surge on its middle distillates.
The rise in distillates also pushed oil prices higher, countering the downward pressure caused by economic concerns. While the US Fed reiterated its “higher for longer” interest rate policy, Europe is almost certain to head into contraction in Q3.
The worsening macroeconomic outlook has kept oil prices largely unchanged compared to a week ago, with ICE Brent still hovering around $94 per barrel.
