Russian seaborne oil product exports drop 33% in July
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Russian seaborne oil product exports drop 33% in July to 3.9 million metric tons, hit by Ukrainian attacks on refineries and a diesel export ban. Diesel and gasoil shipments sink 60% to 0.75 million tons, while naphtha exports fall 35%. The decline tightens fuel supplies to Asia, the Middle East, Turkey and Brazil, even as Russia extends the ban through August.
Export Drop
Russia's seaborne oil product exports fell to 3.9 million tonnes in July, a 33% decrease from June, according to LSEG data and market sources. The drop follows Ukrainian drone attacks on Russian refineries, which reduced fuel output, and a temporary diesel export ban imposed to secure domestic supplies. The ban, extended to end-August for producers, exempts previously contracted cargoes and intergovernmental deals.
Product Breakdown
Diesel and gasoil shipments plunged 60% to 0.75 million tonnes, while naphtha exports dropped 35% to 0.8 million tonnes amid strong domestic gasoline demand. Dark oil products — fuel oil and vacuum gasoil — accounted for 60% of total exports, falling 21% to 2.3 million tonnes. The sharpest cuts hit middle distillates, where the export ban had the most direct impact.
Market Impact
The supply reduction threatens to tighten fuel availability in Asia, the Middle East, Turkey and Brazil, which have become the main buyers after the EU embargo on Russian oil products took effect in February 2023. Traders warn of potential price spikes and logistical challenges as alternative sources are limited. The shortfall coincides with peak summer demand in several importing regions, amplifying the strain.
What's Next
The diesel export ban is scheduled for review at the end of August, but the government has indicated it may extend restrictions if domestic shortages persist. It remains unclear how quickly Russian refineries can restore production capacity damaged by Ukrainian strikes, leaving seaborne export volumes uncertain for the coming months.
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Russian seaborne oil product exports drop 33% in July
