Russian Diesel Exports Surge To Multi-Year High In Dec: IEA

Russian diesel exports surged to a multi-year high of 1.2mbpd last month with around 60% destined for Europe according to the IEA Monthly Oil Market Report.

• Russia exported 720kbpd of diesel to the EU in December, as Europe increased buying ahead of the Russian oil products ban on 5 Feb. Product markets, especially diesel, are most at risk just as demand growth recovers.
• Following an initial collapse in Russian loadings after the EU crude embargo and a G7 price cap came into effect on 5 Dec, exports have partially rebounded - underscoring the high degree of uncertainty for the outlook.
• Russian oil exports fell by 200kbpd on the month in December to 7.8mbpd, as crude shipments to the EU declined after the EU crude embargo and G7 price cap came into effect.
• Oil on water increased by a massive 181 mb because tankers now have to sail significantly longer distances due to the reallocation of Russian flows.
• Record price discounts on Russian benchmark export grades of up to $40/bbl compared with North Sea Dated shrunk revenues by $3bn to $12.6bn last month – their lowest since February 2021.