The EU's import ban on Russian refined oil products will take effect in January next year, giving the diesel market a breather.

The EU has stated that the new measures aimed at restricting the flow of fuel refined from Russian crude oil will not take effect until January next year, alleviating some concerns about the possible exacerbation of the already tense diesel market. Last Friday, the EU announced that it would push for a ban on the import of finished oil products (especially diesel) produced in third countries using Russian crude oil. This measure is actually one of the main ways to prevent circumventing sanctions on Russian supply. Since the restrictions came into effect, some countries that heavily purchase Russian crude oil (like India) have been able to buy Russian crude oil at lower prices, refine it, and then sell the finished products to Europe. Initially, this news of sanctions sparked a sharp rise in European diesel prices. However, more detailed information on the sanctions emerged in the late-night session last Friday, revealing a 6-month transition period for the ban on importing refined products from Russian crude oil, which will come into effect on January 21 next year. This means that EU operators will be prohibited from obtaining, importing, or converting oil products from Russian crude oil into the EU for six more months. The announcement led to a significant drop in diesel prices, almost completely erasing the intraday 7% gain. Analyst Florence Schmit from the Dutch cooperative bank commented, "The EU announced a six-month transition period at the last minute, providing some breathing space for the diesel market." She added that the delay in implementation means that further tightening of diesel supply will occur when the oil market is expected to be oversupplied, potentially limiting the impact of the sanctions.