Russia Oil Products Summary: Russia Bans Diesel and Gasoline Exports

The Russian government has introduced a temporary ban on the export of gasoline and diesel fuel effective Sep. 21 to stabilize the domestic market according to the government’s press service.

• Transneft has stopped loading diesel of Euro 5-grade for export at ports of Novorossiysk and Primorsk from Friday, following government decree, Tass says
• Bloomberg vessel tracking has flagged clean tankers bound for Russian diesel exporting ports going under anchorage because of yesterday’s ban.
• Government spokesman Dmitry Peskov said the measures will remain as long as necessary to stabilize the market.
• Russia’s Deputy PM will hold a meeting with the leaders of Russian oil companies Friday to discuss the domestic fuel market, according to Interfax.
• Russia’s halt to exports of diesel and gasoline will “aggravate” an already tight oil market ahead of winter, according to the IEA.
• JP Morgan said it expects it to be temporary and last only couple of weeks, until harvest concludes in October.
• Russia gasoline/diesel ban is likely to last 6-week according to Citi analysts. They said a prolonged ban of these fuels would not be in Russia’s interests and it could end up shutting in crude production.
• Russia’s ban on diesel and gasoline exports could last slightly over one month and may offer and upside for US refiners, according to TD Cowen’s equity research group.
• Russian seaborne diesel and gasoil exports on 1-20 September stood at around 1.7mn tons, down by almost 30% compared with the same period in August, LSEG data showed
• Turkish diesel imports were less that 300kbd at the start of the year, reaching just over 500kbd in July – supported by extra Russian barrels. A significant portion of this was then re-exported to Europe.
• Russian diesel comprises 80% or Turkey’s diesel imports post Ukraine invasion. The knock on impact is that imports of ‘Turkish diesel’ have increased sharply in recent months into countries like Italy, Spain, Cyprus and other west Med nations according to Vortexa as the Russian volumes are re-exported.
• Russian wholesale gasoline and diesel prices have been tumbling Friday after the ban on exports of the grades from the country. Prices for Russia's wholesale gasoline Ai-92 grade fell by 9.7% on the St. Petersburg International Mercantile Exchange (SPIMEX) on Friday. Diesel prices were down by 7.5%.
• See here for statement: http://government.ru/news/49564/