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Russia’s Domestic Diesel Output Could Fall in Oct

OIL PRODUCTS

Russia’s diesel supplies to the domestic market could fall in October despite the current ban on its export, according to according to Mikhail Turukalov, an independent US-based oil-products analyst.

  • The October plan of pipeline diesel supplies in Russia is currently 883k mt, down from 923k mt scheduled for September and 1.1m mt in August. The decline in domestic flows is likely the result of a lack of storage in the diesel pipeline system.
  • The drop in domestic supplies, coupled with an export ban, means an inevitable fall in diesel output. This could force the government and oil companies to find a rapid compromise, which could lead a revision of the October plan.

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