The president of the Brazilian Infrastructure Center, Adriano Pires, in an interview with CNN , said that the stock of diesel in Europe could raise the price of oil. He explains that the region is suffering from the gas supply sanctions in Russia. “And there is a concern to cut gas in winter”.
The analyst explained that the substitute for gas in Europe is diesel, and the Europeans are stocking up to try to let the situation “not be as dramatic as one might imagine”.
“This stockpiling increases demand, and the price can go up again.” It is worth remembering that diesel is an oil derived from the distillation of petroleum.
Some analysts say that between December and January, when winter begins in Europe, oil may be at US$ 65 or US$ 70, but Pires thinks this is an exaggeration. He justifies that “the refining capacity in the world is practically all used, and due to environmentalists too, in recent years, investment has stopped in building refineries”.
“The news [refinarias] were in Asia, practically in the West there was not a new one. So, even with oil falling in price, it may be that gasoline and diesel don’t fall as much because they don’t have the ability to increase refining overnight.”
On Thursday (1st), Brent crude futures were down $3.12, or 3.26%, to $92.52 a barrel at 1:31 pm ET. U.S. WTI crude oil futures lost $2.82, or 3.15%, to $86.73 a barrel.
*under the supervision of Ludmila Candal, from CNN
Source: CNN Brasil
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