Russia may extend diesel export restrictions amid strikes on oil refineries - Bloomberg
Photo: Refueling a car with diesel fuel (Getty Images)
Russia may extend diesel fuel export restrictions for another month. The decision is being discussed amid problems with oil refining and strikes on oil refineries, Bloomberg reports.
According to sources familiar with the situation, there is a general understanding within the Russian government about extending the ban.
One of the sources said that the options under consideration include extending the restrictions for another month or even longer.
Why Russia restricted diesel exports
Moscow introduced a ban on diesel fuel exports in July. This came after a wave of Ukrainian strikes on Russian oil refineries, which caused the country's oil refining volumes to fall to their lowest levels in several years.
The restrictions were initially planned to last only a few weeks. However, they were later extended through the end of August and then through the end of September, as strikes on Russia's oil infrastructure continued.
As of last week, Moscow was already considering extending the ban for another month.
Before the restrictions were introduced, Russia accounted for about 10% of global seaborne diesel fuel supplies. Removing such a volume from the international market further exacerbated supply problems, particularly amid disruptions to fuel supplies from the Middle East.
What is happening with the global diesel market
The diesel fuel market remains under significant pressure. Bloomberg notes that the war in the Middle East has taken more diesel off the market than the Russia-Ukraine war.
The situation is also being affected by disruptions to oil and fuel supplies, as well as logistical problems. According to Bloomberg, a shortage of available supertankers is already driving up the cost of transporting oil and creating additional risks for global supplies.
Against this backdrop, an extension of Russia's export restrictions could become an additional source of pressure on the global diesel market.
Earlier, the General Staff reported that as of September 21, following the strike on the Moscow Oil Refinery, more than 45% of Russia's oil refining capacity had been taken offline.
The agency said that the production of gasoline and diesel fuel meeting the Euro-5/K5 standard had declined in Russia.
