Russia's oil refining hits 20-year low in June
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Russia's primary oil refining fell to 5.4 million barrels per day in June, the lowest level in over 20 years, according to data from the Russian Energy Ministry. The decline reflects reduced throughput at major refineries due to maintenance and drone damage. Output of gasoline and diesel also dropped, tightening domestic fuel supply.
Refining Output Drop
Russia's primary oil refining fell to 5.4 million barrels per day (bpd) in June, the lowest since at least 2000, according to data from the Russian Energy Ministry. This represents a decline of about 8% from May and 10% year-on-year. The drop was driven by reduced throughput at several major refineries, including those owned by Rosneft and Lukoil.
Causes and Impact
The decline is attributed to seasonal maintenance at refineries in the Volga region and Siberia, as well as damage from Ukrainian drone strikes on facilities such as the Tuapse refinery. Output of gasoline fell by 7% month-on-month to 3.2 million tonnes, while diesel production dropped 5% to 6.1 million tonnes. The tighter supply has pushed wholesale fuel prices up by 12% since May, according to the St. Petersburg International Mercantile Exchange.
What's Next
The Russian government is considering a temporary ban on gasoline exports to stabilize domestic prices, with a decision expected by late July. It remains unclear whether the refining recovery will be sufficient to meet summer demand, as further drone attacks could disrupt operations.
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Russia's oil refining hits 20-year low in June
