Authored by Brandon Smith via Alt-Market.us
The eyes of the world have been fixated on the war in Iran for the past six months, meanwhile, the single-most dangerous flashpoint on the planet has gone mostly ignored. Until, that is, waves of Ukrainian drone strikes activated a run on global diesel markets. Suddenly, everyone is paying attention again…
Russia is the second largest diesel exporter in the world next to the United States, supplying around 12% of total global exports (the US supplies 22% of exports). To put this in perspective, only 10% of global diesel exports pass through the Strait of Hormuz under normal conditions – And that supply is coming from seven different oil producing nations including Iran.
After western sanctions, Russian diesel shipments have gone primarily to Turkey, Brazil, India and China. However, because Russian supplies continued to circulate on global markets, these countries did not have to draw fuel from alternative sources.
Conditions have now changed, and not for the better. Constant Ukrainianian drone strikes on Russian refineries have forced the Kremlin to stop all diesel exports and retain their existing supply for the population and the war effort.
If you want to know why diesel prices have been hit hard since July, Russian export cuts are the reason. Traffic through the Strait of Hormuz has steadily climbed since July according to READ MORE AT SOURCE »
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