Russia’s Oil Product Shipments Jumped by 10.4% in May

Russia’s fuel exports by sea increased by 10.4% in May compared to April as Moscow lifted a gasoline export ban and some refineries returned from maintenance, according to Reuters estimates and data from industry sources. 

Last month, Russia shipped 9.595 million metric tons of oil products to international markets, as the authorities lifted on May 20 a temporary ban on gasoline exports and as more refineries completed planned seasonal maintenance or emergency repairs after Ukrainian drone hits.

Exports via the Black Sea and Azov Sea ports jumped by 20.9% in May versus April, petroleum shipments from Russia’s Arctic ports of Murmansk and Arkhangelsk soared by 48.5%, and exports from Russia’s Far East ports went up by 22.4%, according to the Reuters calculations and data from industry sources.

The refining oil capacity that was offline in Russia in May dropped by 27.9% compared to April, per Reuters estimates based on industry sources data.

At the end of February, Russia suspended gasoline exports from March 1 until August 31, 2024, to ensure supply for the domestic market in peak demand season, in a second such export ban in just a few months.

But in May, the Russian Energy Ministry said the ban would be lifted.

“The temporary ban on gasoline exports, which came into effect on March 1, will be suspended due to saturation of the domestic market and completion of unscheduled maintenance at refineries,” said the Energy Ministry, confirming media reports.

In April, Russia’s fuel shipments had dipped by 14.6% compared to March, as refinery repairs, seasonal maintenance, and the gasoline export ban weighed on Moscow’s petroleum product exports.

Russia has had higher-than-expected maintenance and repairs at its refiners in recent months after Ukraine stepped up early this year its drone attacks on the Russian refining capacity. In addition to unplanned repairs to fix damages from the drones, some refineries underwent planned maintenance, which also dragged down Russia’s fuel output and exports earlier this year.

By Tsvetana Paraskova for Oilprice.com

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