{"id":578844,"date":"2023-01-16T04:11:09","date_gmt":"2023-01-16T04:11:09","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/16\/eu-sanctions-to-redraw-global-diesel-markets-us-still-headed-for-recession-despite-slower-inflation-wsj-poll\/"},"modified":"2023-01-16T04:11:09","modified_gmt":"2023-01-16T04:11:09","slug":"eu-sanctions-to-redraw-global-diesel-markets-us-still-headed-for-recession-despite-slower-inflation-wsj-poll","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/16\/eu-sanctions-to-redraw-global-diesel-markets-us-still-headed-for-recession-despite-slower-inflation-wsj-poll\/","title":{"rendered":"EU sanctions to redraw global diesel markets + US still headed for recession despite slower inflation -WSJ poll"},"content":{"rendered":"

<\/a> New European sanctions are about to hit Russian oil products \u2014 but expect <\/strong>major re-routing rather than major re-pricing on diesel: <\/strong>After banning shipments on seaborne Russian crude in December<\/a>, the EU a will ratchet up the pressure on Moscow from 5 February with a ban on refined Russian fuel imports \u2014 key among them diesel. But market-watchers aren\u2019t overly worried about the potential for price spikes on the back of the move, with most analysts telling Bloomberg<\/a> that global diesel flows will be re-routed following some initial disruption. \u201cThe market is pricing in less panic as markets and trade flows have proven resilient,\u201d Keshav Lohiya, founder of consultant Oilytics, told the business newswire. \u201cThis will be a new rerouting of diesel.\u201d<\/p>\n

Same diesel, new route: <\/strong>Russia could sell some of the 600k barrels per day it once supplied to the EU to countries in Africa, Latin America, and Asia, while Europe is expected to up flows from the Middle East, the US, and India. But with no rules against third-party countries buying Russian crude and refining it to sell on to Europe, much of the Russian fuel that the EU is refusing to buy could end up eventually finding its way to the bloc anyway \u2014 with the additional miles traveled only adding to the cost and environmental impact.<\/p>\n

Cooling US inflation won\u2019t be enough to avoid a recession: <\/strong>The Wall Street Journal<\/a> is out with a fresh survey of economists predicting a recession this year, denting hopes spurred by cooler recent US inflation data<\/a> that the US Federal Reserve could manage a so-called \u201csoft landing\u201d and avoid an economic downturn. Economists surveyed put the likelihood of a recession in the next 12 months at 61% on average, only a marginal drop from 63% in October\u2019s survey. Three-quarters of respondents stated that they do not think a soft landing will be possible this year, though most think the coming recession will be shallow. The US Fed has indicated that it will look to slow the pace of rate rises this year after a series of jumbo 75-basis-point hikes in 2022.<\/p>\n

ALSO WORTH NOTING-<\/strong><\/p>\n