Russian Fuel Exports Bounced Back in November

Russia saw its fuel exports tick higher in November, with the daily average rising to 2.2 million barrels, according to data from Vortexa, cited by Bloomberg.

The rebound followed the end of diesel export bans and the end of maintenance season at refineries. Stormy weather in the Black Sea, however, affected outbound fuel shipments towards the end of the month and in early December.

Per the Vortexa data, diesel and gasoil exports rose by 12% from October to November, with the bulk of shipments going to Africa and South America. The bulk of the latter portion went into Brazil.

Gasoline and blending component exports rose by 25% to 75,000 barrels daily last month but jet fuel exports dropped to just 8,000 barrels daily. Naphtha shipments abroad also declined but more modestly, by some 3% to 362,000 barrels daily.

Earlier this month, Bloomberg cited industry data suggesting Russian diesel exports were set for a substantial increase this month, to the tune of some 28%. Some of the increase is a result of delayed loadings because of the Black Sea storms.

According to the data compiled by Bloomberg, the shipments of Russian diesel from the Black and Baltic Sea ports in December would be the highest export volumes since July.

The premium of diesel to crude oil has increased in recent weeks, also incentivizing exports of diesel.

In late summer, Russia announced a temporary ban on diesel and gasoline shipments abroad in order to boost supply on the domestic market and lower prices.

Meanwhile, Russia’s central bank reported that total revenues for the country’s largest oil and gas exporters plunged by 41% between January and September compared to the same period last year, due to lower commodity prices and lower exports.

The redirection of exports and the move away from the U.S. dollar in energy trade settlements also contributed to the lower revenues.

By Charles Kennedy for Oilprice.com

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