Russian exports of seaborne oil products decreased by 10% between February 1 and February 12 versus the same period in January. According to merchants and data, this happened as a result of the EU embargo, a shortage of tankers, and storm-related port closures.
Russian fuel merged with a product of origin of another third nation is exempt from the price cap imposed by the European Union. This also imposed a full boycott on Russian oil products as of February 5th. According to Russian Deputy Prime Minister Alexander Novak last week, the EU price restriction exemptions demonstrate the need for Russia’s petroleum.
Russia’s fuel exports Fall by 10%
Primorsk and Ust-Luga in Russia’s Baltic region conformed to the schedule with fuel loadings from January 1 to February 12. In contrast, St. Petersburg and Vysotsk experienced some decline. Sometimes traders encountered difficulties finding tankers or encountered delays in getting to the export port.
Fuel loadings at Vysotsk were 330,000 tonnes, down from 440,000 tonnes over the same time period the previous month.
Due to severe weather, the Black Sea ports of Novorossiisk and Tuapse shut down. Shut down happened for five to six days before reopening on February 10. Storm interruptions in Russian Black Sea ports might cause train traffic to back up. Along with overstocking of warehouses, it can also reduce refinery run times.
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Russia’s fuel exports have experienced a 10% decrease in the first 12 days of February. It happened due to the recent fall in global oil prices. The drop in demand for fuel has led to a decrease in the country’s revenue from oil and gas exports, which is a significant part of the country’s economy.
The decrease in fuel exports is affecting the country’s overall economic growth. Moreover, the government is taking measures to address this issue. However, it is expected that the situation may take some time to improve. Therefore, the country may face economic challenges in the near future.
