Global Energy Crisis Spurs Scramble for Prized Diesel-Rich Crude
- Russia’s Sokol grade hits highest premium in about 21 months
- Switching from gas and coal aiding diesel, fuel oil margins
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The impact of the global gas and coal squeeze is rippling through the crude market, with the spot differential for Russia’s diesel-rich Sokol grade soaring on expectations that there will be more demand for substitutes this winter.
ONGC Videsh Ltd. sold a cargo for loading in early December at a premium of $5.20 to $5.30 a barrel over the grade’s benchmark, according to traders who asked not to be identified. That’s the widest spot differential since January 2020, data compiled by Bloomberg show.