Russian Fuel Export Ban Driving Fuel Cracks

Further details on Russian fuel export ban:

• The Russian government has introduced a temporary restriction on the export of gasoline and diesel fuel to stabilize the domestic market according to the government’s press service.
• "Russia has introduced temporary restrictions on the export of motor gasoline and diesel fuel. A decree to that effect was signed by Prime Minister Mikhail Mishustin. The decision is aimed to stabilize fuel prices on the domestic market," according to the statement.
• This is in response to record high prices at the pumps for Russian consumers. High duty costs on exports had been touted earlier in the week to make them prohibitively expensive to export but instead a ban has been introduced.
• The measures also come ahead of peak Russian Autumn refinery maintenance in the next few weeks which will limit fuel supply further.
• The measures have knock on impact for other markets. Turkey a big buyer of Russian diesel has been re-exporting barrels to Europe. Brazil has also been pulling volumes from Russia, freeing up US Gulf Coast barrels for Europe. A lack of Russian barrels will impact these trade flows as Europe deals without Russian diesel for the first winter after the Feb 5 import ban.
• *RUSSIA IMPOSES BAN ON GASOLINE, DIESEL EXPORT FROM SEPT 21 – bbg
• See here for statement: http://government.ru/news/49564/
• European and US cracks driven higher by the ban
• Gasoil OCT 23 up 3.3% at 995.75$/mt
• ULSD OCT 23 up 2.9% at 3.42$/gal
• Gasoil OCT 23-NOV 23 up 5.75$/mt at 34.5$/mt
• Gasoil DEC 23-DEC 24 up 18.25$/mt at 118.5$/mt
• EU Gasoil-Brent up 3.6$/bbl at 35.55$/bbl
• RBOB OCT 23 up 0.5% at 2.63$/gal
• EU Gasoline-Brent up 1.3$/bbl at 16.6$/bbl