Europe is ramping up its purchases of diesel from Russia and Asia as it burns the fossil fuel instead of natural gas

Europe is increasing its imports of diesel from other parts of the world because of the energy crisis in the country.

Russia's imports hit a four-month high in July, but purchases are expected to cool in August as the river Rhine runs low.

There are seven tanker ships that will deliver diesel from Asia, and three more expected in the coming weeks. It was the most since January 2020.

Diesel imports from India are expected to double in August, according to early indications. Diesel imports from the Middle East have increased by 36% this month compared to a month ago.

Europe is facing an energy crisis due to a number of factors.

Russia has reduced the flow of natural gas through the Nord Stream 1 line, which goes to Germany, to 20% of capacity due to the high tensions overUkraine.

Nuclear power plants in France are off the grid for maintenance. The river Rhine in Germany is very low after a hot spell. Diesel and coal are harder to transport to factories because of that.

According to data from the ICE Exchange, the benchmark European natural gas prices have increased this year to over 200 dollars per megawatt hour.

According to analysts, high prices are forcing factories and other industries in Europe to burn diesel. Gas-to-oil substitution is a key driver of the International Energy Agency's new predictions for oil demand this year.

David Wech said in a note to clients that European diesel imports are rising strongly so far this month.

With the Rhine water level decline, the market is struggling to place barrels where they are needed the most.

In the first 17 days of August, Europe imported 1.76 million barrels of diesel. In July it was 1.52 million, and in June it was 1.5 million.