Oil and Gas

Russia cuts September seaborne diesel exports to meet domestic shortage

Sep, 22, 2023 Posted by Gabriel Malheiros

Week 202338

The Russian government announced on Thursday (21/9) that it will temporarily limit gasoline and diesel exports to prevent shortages in the domestic market. The measure aims to address rising prices in the country, although no deadline has been set for the restrictions to end.

Russia has become the largest supplier of diesel to Brazil this year, with likely strong impacts on prices in the Brazilian market. Gasoline prices in Russia surged to record highs this week, partly due to the weakening ruble, as well as rising international oil prices and the seasonal refinery maintenance period, which restricts supply.

According to the Ministry of Energy’s announcement, the restrictions will help “saturate the fuel market” and reduce pump prices. Despite the suspension, the government will maintain some exceptions. Exports to countries in the Eurasian Economic Union (comprising Armenia, Belarus, Kazakhstan, Kyrgyzstan, and Russia) and for humanitarian aid purposes will be allowed.

Turkey remains the primary destination for Russian port diesel exports, with around 600,000 tons. Shipments to Brazil have decreased by a third compared to the previous month, to about 260,000 tons since the beginning of this month, according to data from the London Stock Exchange Group (LSEG).

Source: Correio Braziliense

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