Russian Domestic Fuel Stocks Well Supplied

Russia announced Wednesday it has lifted the temporary ban on summer diesel exports. (Snippet adds some numerical info versus prior updates for more context)

• It comes as Russian summer grade-diesel stocks rise 14% higher than when the ban was implemented according to the Russian ministry – exceeding 3.2mn mt.
• The move coincides with seasonal weakness for the grade as demand switches to winter grade fuel.
• The government has prompted Russian refiners to boost winter grade spec while refineries coming back from maintenance also boost supply.
• Looser export controls injected around 700,000 bpd of Russian fuel exports to the global market in October according to Platts vessel tracking – referring to the prior restrictions easing before the latest announcement.
• Flows do however remain below pre-ban levels.
• Russia exported an average of 938,300 bpd of diesel and gasoil over November 2022-August 2023, falling to 665,333 bpd over September-November 2023, according to CAS data.
• The Russian ministry has called the local market well supplied at present.
• Platts assessed ULSD 10ppm sulfur FOB ARA Barges at $852.25/mt Nov. 22, down 16% from when the ban was introduced.