Sunday, July 21, 2024

Russian gasoline production declines

In January, the production of gasoline in Russia experienced a nearly 2% year-on-year decline, attributed to an incident at a major processing plant and drone attacks on refineries in Ukraine. Overall fuel production, encompassing all types, decreased by 1.8% to 3.49 million tons during the same period, according to industry data cited by the outlet. While domestic fuel supplies increased by 6.5% to over three million tons, exports witnessed a significant drop of 31.5%, totaling just 442,300 tons. This decline is attributed to major oil companies scaling back shipments, with Lukoil, the country’s largest private oil company, reducing fuel exports by sixfold due to an incident at its Nizhny Novgorod oil refinery. The refinery, responsible for supplying gasoline to the Moscow region, is facing operational uncertainties due to equipment subject to Western sanctions. Additionally, Ukrainian drone attacks on various fuel export facilities further strained the industry, with incidents reported in the Krasnodar and Leningrad regions, as well as in Volgograd. The long-term impact of a drone-damaged primary oil-refining unit at the Volgograd oil refinery is yet to be assessed. Industry experts from Kpler anticipate a continued decline in February gasoline exports from Russia, influenced by reduced output, particularly affecting supplies to North African countries and Nigeria.

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