Russia’s export revenue from crude and fuels dipped in September again as a slump in refined product shipments couldn’t offset an increase in crude oil exports, data from the International Energy Agency (IEA) showed on Tuesday.
Russian revenues from crude and petroleum products declined to $13.35 billion in September from $13.58 billion in August, per the agency’s estimates in its monthly report.
“Persistent attacks on Russian energy infrastructure have cut Russian crude processing by an estimated 500 kb/d, resulting in domestic fuel shortages and lower product exports,” the IEA said.
“The drop in Russian middle distillate exports reverberated globally as regular buyers scrambled to secure alternative supplies, bidding up diesel and jet fuel cracks in the process. Light sweet crude refining margins hit two-year highs in Europe and 18-month highs on the US Gulf Coast and in Singapore in September,” the agency noted.
The IEA estimated that Russian crude and oil product exports rose by 210,000 bpd to 7.4 million barrels per day (bpd) in September, thanks to a 370,000-bpd jump in crude exports, the highest in 16 months as Russia’s refining capacity was crippled by Ukrainian drone attacks. But revenues from crude, at lower prices, couldn’t offset the drop in fuel export revenues.
Ukraine’s drone attacks on Russian refineries crippled both Russia’s fuel production and exports, with seaborne shipments in September plunging by 17.1% compared to August, according to Reuters estimates based on data from industry sources.
Russia last month extended the ban on gasoline exports and introduced a ban on non-producers to export diesel by the end of the year.
Russian diesel and gasoil exports are tracking below the seasonal average, with September exports standing at 760,000 bpd, the lowest seasonal level since 2017, Vortexa estimated earlier this month.
“Partial export restrictions and refinery disruptions have reduced supply into the Atlantic Basin, but exports are expected to start recovering in late Q4, as refineries come out of seasonal maintenance,” said Vortexa market analyst
Mick Strautmann.
“However, this is possibly limited by any long lasting damage from drone attacks.”
By Charles Kennedy for Oilprice.com
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