The US is about to receive a large amount of diesel supply from Russia as Washington strives to cool down the fuel’s retail price which has recently hit its highest level since 2014. As specified, about two million barrels of diesel carried by four tankers are currently heading from Russia to the east coast of the US.
Vortexa analysts highlighted that Russian producers have been ramping up the 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. 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.
It is reminded that retail prices for diesel in the US East Coast have soared to being the costliest in seven years, with distillate inventories in the region dropping by nearly a third from levels recorded earlier this year. Demand for the fuel is expected to further grow as logistics companies are intensively working to catch up on supplies that decreased due to the coronavirus pandemic.