financetom
Market
financetom
/
Market
/
Russia plans to slash sea diesel flow by nearly 25% this month
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Russia plans to slash sea diesel flow by nearly 25% this month
Sep 8, 2023 8:01 AM

Russia plans to reduce diesel exports from its key western ports by a quarter this month amid seasonal refinery maintenance and government efforts to keep more fuel at home to ease growth in domestic prices.

Share Market Live

NSE

Diesel loadings from Russian ports on the Black and Baltic Seas, including some batches from Belarus, are set at 1.874 million tons this month, down almost 25 percent from August’s plan, according to industry data seen by Bloomberg. That’s equivalent to 466,000 barrels a day, down from about 600,000 barrels a day from last month’s schedule, Bloomberg calculations show.

It is also Russia’s lowest diesel-exports plan since May, when the nation’s refiners held their spring maintenance season, according to historic data.

Diesel loading plans, in million tonsSeptemberAugust
Baltic port of Primorsk1.111.64
Baltic port of Vysotsk0.2360.295
Black Sea port of Novorossiysk0.5280.561

The plan seen by Bloomberg only shows shipments of diesel delivered to ports by pipeline. Smaller volumes may also be sent by rail. Actual flows may differ, depending on the weather and demand from foreign customers. Pipeline operator Transneft PJSC, which compiles the loading schedules, declined to comment on the September export plan.

The drop in diesel exports follows the decline in the nation’s refinery throughput as more plants undergo autumn maintenance. Russia’s daily primary crude processing on Aug 24-Aug 30 fell by nearly 240,000 barrels a day from the week before, according to a person with knowledge of the matter. The maintenance is set to peak between the second half of September and the first half of October.

The nation’s refiners have been also redirecting some batches of diesel to the domestic market at the request of the Energy Ministry, as the government is struggling to curtail price growth on the road fuel.

The energy ministry has been advising refineries to limit overseas supplies of diesel and gasoline and sell more fuel at home to ensure the demand is met. In August, the nation’s overall fuel exports dropped to an 11-month low, reflecting both the start of maintenance and redirections of some volumes to the domestic market.

For this month, the ministry recommended major oil producers curb their exports of Euro-5 grade diesel to just over 1.5 million tons. The recommendation is not legally binding and the nation’s producers may opt to export more high-quality diesel if the pricing abroad is more attractive than at home.

The ministry has also drafted a proposal to allow only oil refineries to export diesel and gasoline, a move that would combat so-called gray-market flows seen as a reason for rising prices. If approved, the proposal may somewhat limit fuel exports as companies that don’t produce fuel but purchase it domestically and re-sell abroad will not be allowed to continue the business.

ALSO READ: US dollar and crude oil don't usually rally together but it's happening now

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Exchange-Traded Funds, Equity Futures Lower Pre-Bell Tuesday as Investors Exercise Caution Ahead of Fed Meeting
Exchange-Traded Funds, Equity Futures Lower Pre-Bell Tuesday as Investors Exercise Caution Ahead of Fed Meeting
Mar 18, 2025
08:10 AM EDT, 03/18/2025 (MT Newswires) -- The broad market exchange-traded fund SPDR S&P 500 ETF Trust ( SPY ) was down 0.3% and the actively traded Invesco QQQ Trust (QQQ) retreated 0.5% in Tuesday's premarket activity, as investors remain cautious as they await the Federal Reserve's policy meeting amid ongoing trade tensions and economic uncertainties. US stock futures were...
US STOCKS-Futures decline ahead of Fed rate decision
US STOCKS-Futures decline ahead of Fed rate decision
Mar 18, 2025
(For a Reuters live blog on U.S., UK and European stock markets, click or type LIVE/ in a news window) * Nvidia ( NVDA ) inches up ahead of annual software developer conference * Tesla slips after RBC lowers price target * Gold miners gain as prices hit record high * Futures down: Dow 0.17%, S&P 500 0.22%, Nasdaq 0.34%...
COLUMN-Houston, we may have an asset problem, not a debt problem: McGeever
COLUMN-Houston, we may have an asset problem, not a debt problem: McGeever
Mar 18, 2025
(The opinions expressed here are those of the author, a columnist for Reuters.) By Jamie McGeever ORLANDO, Florida, March 18 (Reuters) - It's widely believed that the biggest issue with U.S. consumers' balance sheets is indebtedness, but the Federal Reserve's latest financial accounts - and the volatile stock market - suggest that larger risks may be on the other side...
Fed Meeting in Focus as US Equity Futures Slip Pre-Bell
Fed Meeting in Focus as US Equity Futures Slip Pre-Bell
Mar 18, 2025
08:24 AM EDT, 03/18/2025 (MT Newswires) -- US equity futures were cautiously lower pre-bell Tuesday as the Federal Reserve kicks off its policy-setting meeting. The Dow Jones Industrial Average futures slipped 0.2%, S&P 500 futures declined 0.2%, and Nasdaq futures were down 0.4%. The Federal Open Market Committee begins its two-day meeting Tuesday, which will be capped by a rate...
Copyright 2023-2026 - www.financetom.com All Rights Reserved