Russian Diesel Flows Are Lowest in Years as Drones Hit Refiners

b36sk1smnuh3f3s0cia]i71l_media_dl_4.png Vortexa data, compiled by Bloomb

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(Bloomberg) — Russian diesel exports dropped to a fresh multiyear low in early August as Moscow restricted fuel exports in the face of attacks on the country’s refineries.

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Diesel and gasoil exports fell to just 80,000 barrels a day in the first seven days of August, less than a previous low in July, according to Vortexa Ltd. data compiled by Bloomberg. Shipments were above a million barrels a day at the end of last year.

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The Kremlin imposed a diesel export ban in early July and later extended it through Sept. 1, though it excludes shipments under intergovernmental agreements. The supply squeeze has helped to push European diesel prices to multiyear highs and tightened global fuel markets already strained by disruptions from the US-Iran war.

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More broadly, stronger fuel oil and naphtha shipments lifted overall oil product exports. Seaborne shipments of major refined fuels were about 1.3 million barrels a day in the period, rising 33% from a July slump that marked the lowest monthly level since at least early 2022. Restrictions on gasoline and diesel exports may have sharpened the incentive to boost other fuels.

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Russia’s crude throughput was 3.9 million barrels a day in July, near the lowest in more than two decades, the International Energy Agency said on Aug. 12. Runs are expected to recover only marginally to 4.4 million barrels a day by December if Ukrainian attacks continue broadly in line with Russia’s ability to repair damaged refining equipment. 

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Here’s a breakdown of oil product shipments from Russian ports in the period Aug. 1-7, compared with the daily average for the whole of July:

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Russian diesel and gasoil shipments slumped 48% in early August from the previous low of 153,000 barrels set during July, with observed exports confined to Black Sea ports. 

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Naphtha exports climbed by 68% to 511,000 barrels a day, the highest since March. Gasoline and blending component flows were about 36,000 barrels a day. Jet fuel shipments surged to 49,000 barrels a day, the highest since November 2023.

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Fuel oil shipments gained 21% to about 571,000 barrels a day, the highest since May. Flows of refinery feedstocks, which include vacuum gasoil, rose to about 46,000 barrels a day.

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NOTE: Cargo volumes and destinations are likely to be revised as more shipments are observed for the rest of the month.

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