Russian Idle Primary Oil Refining Capacity Revised Up

Russia’s estimated offline primary oil refining capacity for June has been revised up by 9% to 4.029mn tonnes, likely as a result of drone attacks on refineries, industry sources told Reuters.

• The rise in offline refining capacity usually leads to an increase in available crude oil volumes and a boost in exports.
• Latest data from sources suggest that idle primary oil refining capacity in July may fall by around 60% from June to 1.683mn tonnes.
• Ilsky oil refinery in southern Russia is expected to see its crude distillation units AT-5 and AT-6 undergo maintenance from 2-20 June following an emergency stoppage, sources said.
• The CDU at Krasnodar refinery is expected to undergo maintenance from 13-26 June due to an emergency stoppage, according to the sources and data.
• It was not clear what caused the emergency stoppages or why the refineries required maintenance. However, refineries across southern Russia have been frequently attacked by drones since Russia invaded Ukraine in February 2022.