Russia's Oil Export Ban Sparks Sharp Rise in Global Prices

Russia's decision to ban diesel exports has shaken global energy markets. The measure has exacerbated fuel shortages and driven up prices even in countries that no longer purchase Russian diesel, according to Reuters.

Russia is the world's second-largest oil exporter after the United States. Its exports had already been declining prior to the ban due to domestic shortages. From 1 to 10 July, it exported only 234,000 barrels per day, compared to 400,000 in June, and the average for 2025 was approximately 817,000 barrels.

The situation was exacerbated by new US attacks on Iran, which once again raised concerns about shipping through the Strait of Hormuz. In addition, US crude oil inventories fell by more than 4.5 million barrels over the week and remained 6% below the five-year average.

US low-sulfur crude oil futures rose 11% on Wednesday to $154 per barrel. Compared to Wednesday's price of US WTI light crude, this represents a premium of roughly $80. Prices also rose in Europe, with the premium for low-sulfur crude futures contracts reaching nearly $61 per barrel compared to the price of Brent crude. This represents a historic high.

The disruption in Russian supplies is forcing Brazil and Turkey to compete with European buyers for US fuel. Higher prices could drive up costs in transportation, energy and agriculture ahead of the harvest in the Northern Hemisphere and the planting season in the Southern Hemisphere.

(Reuters, luc)