REPYY - Morgan Stanley not sure where Europe will get diesel post Russian embargo

Europe has announced measures to phase out Russian oil (USO) imports in 2022; however, the impact on global supply and demand could be limited, as seaborne exports re-route to other markets. Importantly, Europe also plans to ban distillate imports (heating oil, diesel, jet fuel); a much more niche seaborne product. Over 50% of crude is sold on the seaborne market, with ships frequently traveling between continents on average voyages lasting 28 days; only 25% of global distillate production is sold on the seaborne market, via shorter regional routes lasting on average 15 days, according to Morgan Stanley. Morgan Stanley's concern, which the bank shared in a note Tuesday, is that Russia accounts for the vast majority of European distillate imports, while the remaining imports sail from destinations in the Middle East and India. As Europe phases out Russian distillate imports, shipping markets may be unable to provide the required transport

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Morgan Stanley not sure where Europe will get diesel, post Russian embargo