Russia Sees No Need for Diesel Export Ban, Novak Says

Russia’s federal government does not prepare to prohibit diesel exports once again, Deputy Prime Minister Alexander Novakstatedon Friday, after Ukrainian drone attacks have actually decreased Russian refining capability.

Presently, Russia produces two times the volume of diesel than domestic intake, Novak informed press reporters, as priced quote by Russian news firm TASS.

“If we prohibit exports, we will not have anywhere to put the diesel,” Novak stated, including that the Russian fuel market is steady, both in supply and rates.

“All the procedures the federal government has actually just recently taken guarantee steady supply and steady rates,” the main kept in mind.

In the fall of 2023, Russia prohibited exports of diesel and fuel in an effort tosupport domestic fuel ratesin the face of skyrocketing costs and lacks as petroleum rallied and the Russian ruble damaged. Prior to executing the restriction, Russia had actually raised obligatory supply volumes for motor gas and diesel fuel to handle a supply crunch.

The restriction on diesel and gas exports lasted just a couple of weeks.

Now Russiasuspended gas exportsfrom March 1 till August 31, 2024 to make sure supply for the domestic market in peak need season.

Russia has actually seen its refining capability lessened in current weeks, due to seasonal upkeep, however many of all due to drone attacks from Ukraine, which have actually harmed numerous refineries that have actually closed down for repair work.

According toReuters approximatesthe quantity of Russian oil refining capability that has actually been taken offline due to Ukrainian drone strikes is 14% of Russia’s overall refining capability. Estimations reveal that 900,000 barrels daily of refining capability have actually been taken offline by drone strikes, Reutersreportedpreviously today.

Ukraine has actually stepped up attacks on oil refineries in Russia in current weeks, which have actually minimized Russian refining capability, and which, supposedly, have theWhite House worriedabout increasing worldwide costs.

The United States has actually consistently advised Ukraine to stop its drone attacks on Russian oil refineries due to Washington’s evaluation that the strikes might cause Russian retaliation and rise worldwide oil rates, theFinancial Timesreported recently, mentioning sources knowledgeable about the exchange.

By Charles Kennedy for Oilprice.com

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