Will Europe’s ban on Russian diesel hike global fuel prices?

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FRANKFURT, Germany (AP) — Europe is taking another big step toward cutting its energy ties with Russia, banning imports of diesel fuel and other products made from crude oil in Russian refineries.

https://apnews.com/article/russian-diesel-fuel-embargo-explainer-28b9043593c7cb92e032aa451c837b39?

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A price cap on Russian oil aims to starve Putin of cash. But it’s largely been untested. Until now

For months after Ukraine’s Western allies limited sales of Russian oil to $60 per barrel, the price cap was still largely symbolic. Most of Moscow’s crude — its main moneymaker — cost less than that.  But, with Russia’s profits rising, the Israel-Hamas war pushing up global oil prices and evidence that some traders and shippers are evading the cap, the first signs of enforcement are appearing. Read more.

Why this matters:

Sanctions advocates say the crackdown needs to go further to really hurt Russia. Moscow’s ability to sell more to the world than it buys means it’s weathering sanctions far better than expected. And oil income being the linchpin of Russia’s economy means President Vladimir Putin can pour money into the military while avoiding worsening inflation and a currency collapse.
 

The price cap requires only a good-faith disclosure from companies on a simple, one-page document with names of the parties and the price. The actual sales contracts don’t have to be revealed. And that, analysts say, has been an invitation for unscrupulous sellers to fudge — and for some shippers to adopt a see-no-evil approach.

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Oil prices have risen. That’s making gas more expensive for US drivers and helping Russia’s war