Lack of refined fuel is forcing Russia to export record crude oil volumes in June – Reuters
Russia intends to ship record volumes of crude oil from its main western ports in June.
Source: Reuters, citing sources
Details: The increase in crude oil exports is largely due to the decline in Russia's refining capacity following Ukrainian attacks on its oil infrastructure.
Shipments from Russia's Baltic ports of Primorsk and Ust-Luga and the Black Sea port of Novorossiysk are expected to reach about 2.7-2.8 million barrels per day in June.
In May, average export volumes stood at 2.5 million barrels per day. A previous export forecast for June was only 1.7-1.8 million barrels per day.
Traders say the rise in Russian exports could cause a further drop in global oil prices, which are already falling because of increased supplies from Iran.
Background:
- Russia is negotiating with Kazakhstan to import around 50,000 tonnes of AI-92 petrol to ease domestic shortages caused by refinery shutdowns and unscheduled repairs.
- The Moscow Oil Refinery is unlikely to resume operations for at least another six months following Ukrainian drone attacks.
- Russia has begun importing petrol by sea for the first time in a long while to cover fuel shortages caused by Ukrainian strikes on oil refineries.
Read more: Putin's oil empire on fire: could Ukraine cut off Russia's fuel supply?
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