Oil refining will increase after refinery repairs

In June, Russian refineries plan to ramp up operations after scheduled and unscheduled repairs are completed to prevent fuel shortages in the regions. According to Reuters, citing industry and trade sources, this will lead to a reduction in export shipments.

The agency indicates that crude oil shipments from the western ports of Primorsk, Ust—Luga and Novorossiysk may drop to about 1.7 million barrels per day in June from 2.5 million barrels per day in May. This shift is due to the fact that after the completion of maintenance and repairs of the refinery, internal refining capacities will be increased to cover the seasonal increase in demand and eliminate local fuel shortages.

Reuters sources also note that Russian companies plan to increase oil production by about 250-400 thousand barrels per day in June to compensate for the change in the balance between exports and domestic consumption. Previously, a number of plants had been subjected to massive strikes and preventive repairs — this, as well as the redirection of raw materials for export in the previous months, led to a temporary increase in export volumes while reducing domestic processing.