Russia's oil product exports fall to lowest level since full-scale war – Bloomberg

Following Ukrainian strikes and tougher sanctions, exports of refined fuel from Russia have fallen to their lowest level since the start of its full-scale war against Ukraine. Bloomberg reports on these figures, citing data from the analytical company Vortexa Ltd.

The media attributed the drop to "a combination of refinery outages and tightening Western sanctions," which disrupted Russia's energy trade.

According to Vortexa Ltd, the total volume of marine supplies of petroleum products in the first 26 days of October averaged 1.89 million barrels per day, the lowest since at least the beginning of 2022.

Despite a slight increase in diesel exports, total shipments declined due to weak performance of ligroin (a petroleum fraction used to make gasoline and for the petrochemical industry) and fuel oil, especially from ports on the Baltic Sea following the Ukrainian attacks on the terminal Ust-Luga, which is responsible for more than 60% of such Russian exports. The unfavorable weather conditions in the region in recent days could also affect port operations, Bloomberg notes.

"The decline marks a setback for Moscow’s efforts to maintain stable energy revenues as Ukrainian drone strikes on Russian energy infrastructure and escalating sanctions disrupt financing and transport of oil," the media outlet notes.

It said the latest wave of restrictions targeting Russian oil giants Rosneft and Lukoil has added new uncertainty, forcing traders to "juggle payment routes and voyage timings" ahead of the November 21 deadline for US sanctions.

In the near term, Russian diesel exports remain relatively stable as most shipments are destined for neighboring markets (such as Turkey and Africa, where they can be delivered before the deadline), but supplies of ligroin and fuel oil are more vulnerable as long shipments to Asia pose a risk of delay for some sanctioned cargo, Bloomberg explains.

Earlier, on October 15, the agency reported that Russian fuel exports had fallen to a new low since the start of the full-scale war due to problems with refineries in Russia.

• On October 27, president Zelenskyy said that new US sanctions could reduce oil exports by 50%.
• Meanwhile, British prime minister Starmer said that prospects for Ukraine are improving after US president Trump imposed new restrictions.
• The next day, the American ambassador to NATO said that the head of state would enforce tough new oil sanctions against Russia to force dictator Putin to sit down at the negotiating table.