LONDON, (Reuters) – The benchmark European price for a tonne diesel has risen to a record $509.75 on Tuesday. This was due to fears about disruptions in Russian fuel supply.

A market structure that is more expensive for delivery in the near future than it is in the spot market, is called backwardation. It is usually indicative of a tight marketplace.

Diesel profit margins also jumped to a record $62/barrel, Reuters calculations reveal. The British oil company Shell (LON) stated that it wouldn’t buy Russian fuel anymore and Washington had banned imports from Russia.

Because Europe’s refineries aren’t producing enough diesel for Europe’s needs, it heavily relies on imports of diesel. Russia is a significant supplier, along with the United States and the Mideast Gulf, Asia Pacific, and the United States.

U.S. President Joe Biden declared a ban against Russian oil imports and other energy imports Tuesday in response to Moscow’s invasion Ukraine. Britain announced that it will phase out Russian oil imports by 2022.

Refinitiv data shows that European imports from Russia and the Baltic load points of diesel and gasoline are currently at 6662,000 tonnes. This is 22% more than previous weeks.

Refinitiv reported that Britain is still the biggest importer of Russian diesel at 300,000.0 tonnes. France and Germany are second and third.

According to preliminary loading schedule, Russia’s oil exports from Primorsk in the Baltic Sea are expected to drop by 15% month-on-month. This is compared to 1.58 million tonnes for February.