Russian diesel exports dip as Ukraine war ramps up pressure across the globe on the key industrial fuel

• Russia's diesel exports from Black Sea and Baltic ports dropped 14% in April vs. February, per Bloomberg.
• Global diesel inventories have fallen, sending prices of the key industrial fuel soaring.

Russian diesel exports have dropped sharply since Moscow launched its war on Ukraine, further pressuring the market for the key industrial fuel.

According to Vortexa data compiled by Bloomberg, Russia's Baltic Sea and Black Sea ports moved 3.32 million tons in April, down 14% from February, the tail end of which saw the saw start of Russia's invasion.

And exports from one of Russia's main ports, Primorsk, are set to drop by roughly 30% this month, Bloomberg reported.

The declines come amid a tightening global diesel market that has seen inventories drop. The International Energy Agency noted Thursday that global stockpiles of refined oil products, including diesel, have fallen to extremely low levels, with shortages beginning to impact mobility in several African countries, Yemen, and Sri Lanka.

And should the European Union's ban on Russian oil move forward, exports for energy products across the board could see a decline. Diesel prices in Europe have already soared 88% from a year ago. And in the US, diesel prices hit a fresh record high of $5.56 per gallon on Friday, up 76.5% from a year ago, according to AAA.

That will add more inflationary pressure as diesel is the primary fuel for big-rig trucks that ship goods as well industrial equipment like farm machinery.

As the EU continues to weigh a full-scale embargo on Russian oil, nations like Austria and Hungary have pushed back, warning that there could be severe economic consequences. A top energy official in Austria noted that it could take years to wean off energy supplies from Russia.