Russia Plans To Boost June Diesel Seaborne Exports To 2.2mn T

Russia is planning to increase daily diesel seaborne exports from the western ports – Black and Baltic Seas - by almost a third to 2.2mn tons in June, as some refineries return from spring maintenance according to industry data seen by Bloomberg.

• This is equivalent to 527kbpd, up by around 31% month on month.
• Following the EU ban on Russian oil products imports, Russian firms have found new outlets in the Middle East and Latin America.
• “We expect a surge in Russian refinery runs and an even more significant hike in diesel output in June as the facilities bring back online not just their primary crude-processing units but also hydro-treatment and hydrocracking units” where diesel is produced, Mikhail Turukalov, an independent US-based oil-products analyst, said.
• “In addition, the nation’s refineries expect the government to curb subsidies” introduced to encourage car-fuel supplies to the domestic market, Turukalov said. “That will dampen the attractiveness of the Russian market so the refineries are preparing to direct more fuel to clients abroad.”
• The Russian government and oil companies are scheduled to discuss the current situation on the Russian oil products market today according to Interfax.
• The reason for the meeting is the increase in exchange prices for gasoline since mid-April. Specifically the cost of AI-95 gasoline.