Russian oil exports seen stable in October
- Russia plans to load 3.5 million tonnes of Urals oil from its Baltic ports in September and 1.6 million tonnes of Urals and Siberian Light oil from the Black Sea's Novorossiisk.
- Traders believe this will not be the case this time due to production cuts by Russia within the OPEC+ global deal.
MOSCOW: Russian oil exports are expected to remain stable in October, despite rising domestic refinery throughput, due to a global deal on output cuts and sluggish demand hit by the spread of the coronavirus, traders said on Friday.
A draft loading schedule for the Oct. 1-5 also showed that the overseas supplies of Russian oil will be unchanged from the same period in September.
Russia plans to load 3.5 million tonnes of Urals oil from its Baltic ports in September and 1.6 million tonnes of Urals and Siberian Light oil from the Black Sea's Novorossiisk.
Russian crude oil exports typically peak in September when many refineries reduce their processing due to seasonal maintenance and then decline in October when the maintenance work ends and refinery runs increase.
Traders believe this will not be the case this time due to production cuts by Russia within the OPEC+ global deal, as well as due to a weak domestic fuel demand, undermined by the fallout from the coronavirus.
Market participants say Russian refineries will not use their full capacity when maintenance will be wrapped up.
A decrease in the oil export duty in October will also support exports next month, traders said.
Comments
Comments are closed for this article.