Russian Oil Product Shipments Slipped in June

• Russian oil product shipments decreased by 4.2% in June compared to May, primarily due to increased domestic fuel consumption and refinery maintenance.
• While Baltic port shipments rose, Black Sea exports saw a significant drop, and Arctic ports experienced a surge in shipments.
• Ongoing Ukrainian attacks on Russian refineries and energy infrastructure continue to disrupt oil product supply.

Russian shipments of oil products dropped by 4.2% in June compared to May, on the back of stronger domestic fuel consumption and unplanned maintenance at refineries, according to Reuters estimates and data from industry sources. 

While oil product shipments from the Baltic ports increased last month by 11.7% from May levels, seaborne exports from the Black Sea and Azov Sea ports slumped by 23.8% month-on-month in June, according to the data crunched by Reuters. 

Russia’s Artic ports of Murmansk and Arkhangelsk saw oil product shipments jump by 28.7%, while exports from the ports in Russia’s Far East went down by 3.9%. 

The primary refining capacity which was offline in June rose by 7.9% compared to May, per Reuters calculations. 

Ukraine continues to target refineries in Russia and some of these attacks have affected further product supply from Russian refineries. Combined with higher domestic fuel demand in the summer, Russia’s oil product shipments are estimated to have dropped in June compared to May. 

For example, last month a fire was ignited by a drone attack on an oil depot in the southern Russian region of Rostov. According to a Reuters report, the drone attack had been carried out by the Security Service of Ukraine.

Ukrainian attacks on Russian refineries and other energy infrastructure have become a fixture this year, with drones the weapon of choice for conducting the strikes. 

In May, Russia raised its fuel exports by sea compared to April as Moscow lifted a gasoline export ban and some refineries returned from maintenance, according to Reuters estimates and data from industry sources. 

Russia’s fuel exports in May jumped by 10.4% compared to April, as the authorities lifted on May 20 a temporary ban on gasoline exports and as more refineries completed planned seasonal maintenance or emergency repairs after Ukrainian drone hits. 

By Michael Kern for Oilprice.com

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