Traders warn of Russia-related diesel and gas shortages

• Energy and commodity markets are in shock after Russia invaded Ukraine, the world's top trading firms said on Tuesday, warning of gas and diesel shortages in Europe and economic recession if Russian flows fall further. 
• Prices across gas, oil, metals and agricultural markets have soared since the invasion and become so volatile that companies have had to cut traded volumes owing to strained liquidity. The chief executives of four of the biggest energy traders - Vitol, Gunvor, Mercuria and Trafigura - said the gas market, in particular, had become dysfunctional owing to unmanageable margin calls. 
• Vitol CEO Russell Hardy told the FT Commodities Global Summit that the longer the war goes on, the greater the chance of an economic recession. Russia calls the biggest invasion in Europe since World War Two a "special military operation" to disarm Ukraine and protect it from "Nazis". The West says this is a false pretext for an unprovoked war against a democratic country. 
• Energy markets had little spare capacity even before Russia launched its invasion on Feb. 24. They will now struggle to absorb the potential loss of about 2.0Mn barrels per day (bpd) of oil from Russia, which competes with Saudi Arabia as the world's biggest oil exporters.

(Source: Reuters)