Russian Oil Companies to Ask Putin to Lift Export Ban: Platts

Russian oil companies plan to ask President Putin to lift the diesel and gasoline export ban, according to Platts.

• Oil companies are concerned about a lack of storage for winter diesel if the summer grades cannot be exported abroad.
• According to Platts sources, the ban has already led to the filling of refinery storage, with the sources not expecting the ban to last longer than another week.
• "The export ban is unlikely to last beyond a few weeks given Russia's limited domestic storage capacity. If the embargo continues beyond this, Russian refiners may be forced to cut runs," Platts oil analyst Rebeka Foley said.
• The Government is unlikely to lift the ban until retail prices react sufficiently to falling spot market prices.
• According to local media reports and Platts sources, that was expected in the next 2-3 weeks as retail prices lag the already falling exchange prices.