Russian fleet en route to New York may help ease diesel pain

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A fleet of tankers loaded with Russian diesel bound for the US east coast could help reduce the highest retail fuel prices in seven years.

Four tankers with 2 million barrels of Russian diesel on board, the highest amount of data dating back to 2018, are expected to arrive next week as gas-rich Russia launches material-dependent diesel production units first extracted from expensive natural gas. , according to Vortexa Ltd.

“Russia is better positioned to supply diesel than other refiners in Europe because of its access to cheap natural gas,” said Clay Seigle, managing director of Vortexa in Houston. “It’s very rare that we see such large volumes coming to the east coast. “

Cargoes will arrive in New York and New Haven, Connecticut, at a time when refinery maintenance in the United States has tightened the region’s fuel supply. The St. John refinery of Irving Oil Ltd. in Canada, a traditional fuel supplier on the east coast, is restarting units after having undergone work planned since the end of September. The region generally obtains most of its imports from Canada.

Russia has suspended natural gas flows to Europe in a row over the approval of the controversial Nord Stream 2 pipeline. But the nation is boosting diesel exports. Flows from the Baltic port of Primorsk are expected to reach their highest level since at least 2016.

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