Diesel Markets Regain Ground on Partial Restart of Russian Exports

Diesel markets regain some ground after an initial move lower in response to the easing of some restrictions on Russian fuel exports.

• The ban on Russian pipeline diesel exports via ports will be lifted immediately but Russia has imposed a prohibitive fuel duty for gray exporters and companies must supply no less than 50% of diesel to the local market.
• The partial easing of the ban will see the resumption about 1.4-1.5m metric tons of diesel exports in October according to TASS citing Sergey Kondratyev at the Institute of Energy and Finance. The Russian exports would be two times less than before the ban.
• Even after the resumption, domestic fuel supplies of 5.4-5.8m metric tons will still create a surplus to at least 1m metric tons, he added.
• "It means refineries will have to revise production plans. I believe the government will revisit the discussion of constraints by the end of October and they will be softened for gasoline as well," Kondratyev said.
  • Gasoil OCT 23 up 0.3% at 871$/mt
  • ULSD NOV 23 up 1.7% at 2.92$/gal
  • Gasoil OCT 23-NOV 23 up 1.25$/mt at 22.75$/mt
  • Gasoil DEC 23-DEC 24 down -0.75$/mt at 74.25$/mt
  • EU Gasoil-Brent up 1.6$/bbl at 26.59$/bbl
  • US ULSD crack up 2.1$/bbl at 40.52$/bbl