Exports of petroleum products from the Russian Federation continued to fall in the first decade of October, renewing the record low since at least the beginning of 2022.
Points of attention
- Ukrainian drone attacks have resulted in a record collapse in Russian oil product exports, leading to the lowest levels seen in years.
- The reduction in oil refining and a sharp decline in prices have contributed to fuel shortages and decreased exports from Russia.
- Continued attacks on Russian energy infrastructure have significantly impacted oil refining, resulting in around 500,000 barrels per day reduction and affecting domestic markets.
Russian oil exports hit record high in October
In the first ten days of October, Russia shipped an average of 1.88 million barrels of petroleum products by sea, which was the lowest figure since at least the beginning of 2022.
The decrease in oil product exports is a consequence of effective strikes by Ukrainian drones on Russian refineries.
Russia's oil exports have been falling since September. In the first month of autumn, they fell to their lowest level since 2020 due to the same Ukrainian drone strikes, Reuters reports, citing a report by the International Energy Agency.
As noted in the report, in September, Russia shipped 2.4 million barrels of petroleum products to foreign markets daily, which is 170,000 barrels less than in August — mainly due to reduced supplies of gas oil and fuel oil.
Continued attacks on Russian energy infrastructure have reduced Russian oil refining by approximately 500,000 barrels per day, leading to fuel shortages in the domestic market and reduced product exports.
The record decline in oil product exports also hit the export revenue of Russian oil companies, despite the growth in exports of raw "black gold".
The $200 million increase in crude oil export revenues was more than offset by a $440 million drop in petroleum product exports.
In addition, according to the agency, in early October, the discount to the North Sea Brent benchmark for Russian Urals oil exceeded $13 per barrel, which is the largest figure since May. That is, the cost of Russian raw materials in October, based on Brent oil quotes, according to the Investing portal, fell below $50 per barrel.
Experts say the reason for record discounts on Russian raw materials is the surplus of "black gold."
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