Russia will cut diesel exports in September. Inflationary problems for Europe
Due to refinery maintenance and rising domestic fuel prices, Russia is preparing to cut diesel exports from its Baltic and Black Sea ports by nearly 25% in September compared to August export plans , Bloomberg reported Friday.
Diesel shipments from Russia's western ports, including some exports from Belarus, are forecast at 1.874 million tonnes in September, or 466,000 barrels per day (bpd), down from about 600,000 bpd expected for August exports, according to Bloomberg calculations.
The September diesel export plan calls for the lowest shipments since May this year, when spring refinery maintenance was underway.
Now the autumn maintenance of refineries is also reducing diesel exports from Russia.
Primary oil refining capacity going offline in Russia is set to increase 44% in September compared to August due to seasonal maintenance, according to Reuters estimates based on data from industry sources.
4.635 million tonnes of Russian refining capacity is expected to go offline this month, industry sources told Reuters.
Russian authorities recommend refiners reduce exports and sell more fuel domestically to meet local demand, but the recommendation is not legally binding, according to Bloomberg.
Decreasing diesel shipments abroad would lead to a reduction in export earnings for Russia, which continues to earn billions of US dollars every month from exports of crude oil and products.
This Russian move will have two consequences:
- it will put greater pressure on inflation in the West, Europe and the US first and foremost, on the eve of a winter that we don't know what it will be like;
- crude oil exports to India, China and the countries of the Middle East will increase, i.e. to those countries with available refining capacity. that can be exploited.
Russian exports of crude oil and refined products remained stable at around 7.3 million bpd in July, while rising oil prices and narrowing Russian crude price differentials pushed Moscow's revenues higher. higher than in June, according to estimates from the International Energy Agency (IEA) in its August market report. Russian export earnings, at $15.3 billion in July, increased by $2.5 billion from June, but were $4.1 billion lower than in July 2022, according to estimates by the Russian Federation. 'agency.
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The article Russia will cut diesel exports in September. Inflationary problems for Europe comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-tagliera-lexport-di-gasolio-a-settembre-problemi-inflazionistiche-per-leuropa/ on Sat, 09 Sep 2023 07:00:47 +0000.