Russian Supply Ban Poses Mid-Distillate Challenge

Middle distillate markets in the US and Europe could face a rude awakening this fall from their summertime lull. A rerouting of Mideast crude flows from Opec producers has helped fill the gap left by Russian supplies. Along with wobbly demand from high prices and a potential recession, calmer markets have pushed Brent crude below $100 per barrel and European low-sulfur gasoil futures down toward $1,000 per ton. But looming deadlines on EU rules that ban Russian supplies could create havoc this fall.