Russian refiners are expected to ramp up run rates in August following a call from the country’s energy ministry for oil producers to deliver additional volumes to domestic refineries after OPEC+ decided to relax output curbs starting next month. Deputy energy minister Pavel Sorokin said more crude oil would allow refiners to increase gasoline output to build stocks for the period of repair works.
Russia significantly reduced exports of diesel and gasoline in the past months to prioritize the local market amid the COVID-19 pandemic. The country also bans imports of gasoline, diesel, and jet fuel, until October 1 to protect the domestic market.
Under the OPEC+ pact, Russia will be allowed to raise crude oil production by 400,000 bpd to about 9 million bpd starting from next month. According to energy minister Alexander Novak, the additional output will not lead to a surge in exports as most of it will be supplied to the domestic market.
Reduced crude output along with seasonal spring maintenance put Russia’s refinery output low in the past months, traders said. Refinery throughput fell from 25 million tons in March to around 21 million tons in May as some refiners started maintenance in April. Throughput fell further to approximately 20.5 million tons in June despite gradual refinery restart in the same month.
