MOSCOW (MRC) - Seaborne diesel and gasoil exports from Russian ports fell 27% in September from a month earlier to about 2.76 million tons due to a major overhaul of refineries and a fuel export ban, data from traders and LSEG showed, as per Reuters.
Idle primary oil refining capacity for September stood at 4.657 million tons, up 45% from August, according to Reuters calculations. Last month Russia temporarily banned exports of gasoline and diesel from Sept. 21 to cope with a domestic shortage, but later lifted restrictions on bunker fuel and high sulfur gasoil.
The ban on exports of Russian diesel is indefinite, with further government action dependent on a deficit being erased in the domestic market, according to Russian First Deputy Energy Minister Pavel Sorokin.
Russia may introduce overseas fuel export quotas if the ban does not succeed in bringing down domestic fuel prices, Russian Deputy Prime Minister Alexander Novak said last week.
Russian pipeline operator Transneft stopped export shipments of diesel from Primorsk from Sept. 22, when ULSD loadings via the port reached 745,000 tons. Three more cargoes of diesel totaling 113,000 tons were loaded in Primorsk between Sept. 27 and Sept. 30, due to an exception for volumes which had loading orders before the export ban.
Total September ULSD loadings from the Russia's Primorsk fell by 46% month-on-month to 858,000 tons. Primorsk port is the main outlet for ULSD exports, while the Black Sea ports Novorossiisk and Tuapse also include high-sulfur gasoil shipments.
We remind, Russia may introduce quotas on overseas fuel exports if a complete export ban imposed last week does not succeed in bringing down persistently high gasoline and diesel prices, its Deputy Prime Minister Alexander Novak said. The government said in a statement late on Thursday that Novak told a meeting of senior managers at Russian oil companies that the ban on the export of gasoline and diesel had initially led to a fall in prices on the commodity exchange.