DIESEL: Russian Diesel Exports Rise Amid Higher Financial Returns: Vortexa

June diesel/gasoil loadings from Russia’s Novorossiysk spiked to a multi-year high of 410kb/d and Russia’s total seaborne diesel/gasoil exports rose above the 8-year seasonal level in May, Vortexa said.

• A 2.5-month pause in Ukrainian strikes has allowed Russian refiners to ramp up diesel production.
• Completed maintenance at the Volgograd refinery has enabled quick diesel shipments via the Yug pipeline.
• Internal prioritisation of more lucrative diesel/gasoil exports comes amid poor earnings balances for the mainstream producers.
• Exports also boosted by growing Wider Mediterranean region demand for power generation, particularly Turkey and growing volumes in North Africa.
• June diesel/gasoil imports by Egypt, Tunisia and Libya are forecast 45% higher y-o-y at nearly 210kbd, and potentially a record monthly high.
• Increased STS activity in Port Said and Cyprus locations could suggest regional port deliveries to Turkey, Egypt and Libya.
• Israel’s total diesel imports also rose 70% m-o-m after a missile strike on the Bazan refinery, of which 73% originate from Russia.
• Total exports may continue to rise in June above the seasonal range with prioritisation for diesel/gasoil production amid higher financial returns.

Source: Vortexa