The front-month ICE Low Sulphur Gasoil contract has surged by nearly $40/mt in the past two hours after Russia announced a temporary ban on diesel and gasoil exports.

PHOTO: Nieuwe Maas and Erasmus Bridge in Rotterdam. Getty Images

The Russian government has implemented a temporary restriction on the export of gasoil and diesel in an effort to stabilise the supply in the domestic market, reported Russian state media agency TASS. The decision has been taken to control rising domestic gasoline and diesel prices, which touched record high levels in recent months.

Due to a volatile ICE Gasoil price, offer validities for LSMGO have come down to a few minutes in the ARA hub, a source says. Another supplier in Portugal is closely monitoring the situation, and claim it has some room to absorb the impact.

Some bunker buyers are holding back on orders as they anticipate a price correction, a source says.

By Nithin Chandran

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