Russian refined oil product exports by sea dropped by 7% in October compared to September, driven by reduced refining capacity due to maintenance, according to industry data analyzed by Reuters.
Exports of refined oil products fell to 8.861 million metric tons last month. Shipments from Russia’s Baltic Sea ports were down by 4.5%, while exports from Black Sea ports saw a larger drop of 12.6%. The steepest decline occurred at the Arctic ports of Murmansk and Arkhangelsk, where shipments plummeted by 41.5%.
This decline in exports followed a period of increased idling of refining capacity, caused by both scheduled and unscheduled maintenance in September. As a result, Russia’s production of refined oil products decreased, leading to lower shipments from key export terminals.
In addition to the maintenance-related slowdowns, Russia’s Tuapse oil refinery on the Black Sea coast also contributed to the lower export numbers. The refinery, owned by Rosneft, halted fuel production in October at its 240,000 barrels per day facility due to low refining margins. The plant, which typically processes crude for export, stopped operations on October 1 but resumed production earlier in November. The Tuapse refinery mainly exports naphtha, high-sulfur diesel, fuel oil, and vacuum gasoil to markets in Turkey, China, Malaysia, and Singapore. It does not supply gasoline or diesel to the domestic Russian market.
The temporary shutdown of Tuapse added to the overall reduction in refining capacity across the country. The refinery has also been a target for Ukrainian drone attacks this year, which have caused damage to the site.
The drop in export volumes led to a significant fall in Russia’s revenues from seaborne oil product exports. According to the Centre for Research on Energy and Clean Air (CREA), based in Finland, Russia’s earnings from these exports declined by 14% in October compared to September. CREA estimates that Russia earned $187 million (176 million euros) per day from seaborne oil product exports last month.
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