Russia will be ramping up its diesel exports from its Black Sea and Baltic Sea ports by 28% in December from November, as Moscow relaxed further its fuel export curbs and Black Sea storms delayed some November loadings into this month, industry data seen by Bloomberg showed on Friday.
This month, Russia is set to ship an average of around 681,000 barrels per day (bpd) of diesel from its key Western ports, up by 28% from last month, per estimates based on historical data from intelligence firm Kpler.
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.
At the end of last month, estimates by Bloomberg showed that higher refining processing rates and continued easing of fuel export restrictions were set to boost Russia’s exports of refined petroleum products to a four-month high in November.
The higher fuel exports are led by a jump in diesel shipments after Russia partially lifted on October 6 a temporary ban on diesel exports that lasted just over two weeks.
In October, Russia’s diesel exports by sea were estimated to have dropped by 11% compared to September, due to the export ban and heavy refinery maintenance.
Russia’s seaborne diesel exports resumed shortly after the ban was lifted on October 6. The restriction was lifted on exports of diesel and gasoil delivered to seaports by pipeline, provided that the diesel producer supplies at least 50% of the diesel to the domestic market.
The ban on exports of gasoline and diesel was introduced to stabilize domestic fuel prices amid soaring crude prices and a weak Russian ruble in September.
Russia has also recently removed the ban on exports of gasoline, which lasted for nearly two months.
By Charles Kennedy for Oilprice.com
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