Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Ukraine faces potential May diesel shortage, traders say

Published 04/19/2021, 11:24 AM
Updated 04/19/2021, 11:25 AM
© Reuters. FILE PHOTO: The oil refinery near Mozyr, Belarus, on a branch of the Druzhba oil pipeline

By Gleb Gorodyankin and Natalia Chumakova

MOSCOW (Reuters) - Ukraine could face diesel shortages in May because of planned maintenance at the Belarus Mozyr refinery coinciding with a break in supply from Russia's Rosneft, five trading sources told Reuters on Monday.

Swiss-based trader Proton Energy Group, which supplied Rosneft diesel and liquefied petroleum gas to Ukraine, stopped exports from April 1 and new supplier Coral Energy has yet to take over, sources have said.

Ukraine consumes more than 7 million tonnes of diesel a year, importing two thirds of its needs, mainly from Russia and Belarus. After Proton stopped supplies, Ukraine sought to increase seaborne imports but volumes have been insufficient.

Rosneft, which supplied about 1.75 million tonnes of diesel to Ukraine last year via pipelines and railways, does not plan to resume exports next month and Belarus Mozyr refinery is set for planned maintenance from May 15 to June 15, traders said.

Mozyr is expected to supply about 150,000 tonnes of diesel to Ukraine in May, down from the usual 240,000 tonnes a month, traders said.

"We expect a deficit of around 270,000 tonnes in May," one of the sources said.

Another source estimated that the diesel shortages could be between 150,000 and 200,000 tonnes next month, when major grain producer Ukraine would be in the middle of its sowing season.

Ukraine has previously increased imports from sea ports and by rail to compensate for shortages, but it was not clear how it would act on this occasion, traders said.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Rosneft, Coral Energy, Mozyr refinery and the Ukranian Energy Ministry did not respond immediately to Reuters' requests for comment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.