Russia to Raise Western Port Crude Loadings by 9%

Russia will increase oil exports via its western ports to 1.95m b/d in August, a rise of 150k b/d – or around 9% - from July, sources told Reuters.

• However, high domestic demand is likely to cap exports. Russia needs to supply its own market with sufficient levels of crude to produce motor fuels such as gasoline or diesel during summer driving season.
• Oil loadings have been revised up by around 1.8m b/d from the original schedule.
• Seaborne exports have also been ramped up after Lukoil’s supplies to Europe via the Druzhba pipeline have been suspended.
• Russia’s primary offline refining capacity is seen down by a third in July to 1.7m mt, according to Reuters.