This month, Russia’s oil refining capacity has significantly decreased, with 14.5% of its total processing capacity currently offline, according to Reuters’ calculations. This increase from August is attributed to both Ukrainian drone attacks and a combination of planned and unplanned technical issues.
Data from industry sources indicate that the portion of Russia’s refining capacity that is offline has surged by 34% in September. With more facilities out of commission, Russia may increase crude oil exports, as the country has limited storage capacity for crude oil in tanks.
Market sources informed Reuters that the loading plans for oil export terminals at Russia’s Baltic ports have been slightly increased for September. Seasonal maintenance, along with drone attacks on Russian oil and energy infrastructure, have contributed to the idle refining units.
Energy infrastructure has been a primary target in the ongoing conflict, with Ukrainian drone attacks on Russian refineries becoming a regular occurrence this year. These attacks have impacted the supply of products from Russian refineries.
Russia has experienced more maintenance and repairs than anticipated at its refineries following an increase in drone attacks by Ukraine earlier this year. Unplanned repairs to address drone damage, along with scheduled maintenance, have reduced Russia’s fuel output and exports.
In mid-August, the Russian government announced an extension of its gasoline export ban until the end of December 2024. This measure aims to maintain stable domestic supply during seasonal demand peaks and planned refinery repairs.