Russia Oil Output Lower on Refinery Repairs; Diesel Export Ban Possible
Russian Deputy Prime Minister Alexander Novak said oil production is below start-of-year levels due to refinery maintenance, but will recover once repairs are completed. He also flagged a potential ban on diesel exports for producers if needed, while noting gasoline price rises remain within inflation.
Russian oil production has fallen below levels seen at the beginning of the year, driven by scheduled maintenance at domestic refineries, according to Deputy Prime Minister Alexander Novak. Speaking at the St. Petersburg International Economic Forum (SPIEF), Novak stated that export infrastructure is currently operating at maximum capacity to compensate for the output gap.
Novak expects production to rebound once the refineries return from repairs, but did not provide a specific timeline. On the fuel market, he noted that retail gasoline prices at most stations are rising no faster than inflation, describing the situation as stable.
Regarding diesel, Novak left the door open for an export ban by producers, saying such a measure could be adopted if necessary. The remarks underscore ongoing supply-side pressures in Russia's energy sector amid refinery outages and logistical constraints.
Source: MarketTwits