Russia will increase oil exports via its western ports to 1.95 million barrels per day (bpd) in August, up by some 150,000 bpd from July, although high domestic demand will restrain overseas sales potential, two trade sources said on Friday.
Russia needs to supply its own market with enough crude oil to produce motor fuels, which are essential to meet demand in the summer driving season and replenish supplies ahead of seasonal maintenance.
Russia’s August oil shipments from Primorsk, Ust-Luga, and Novorossiisk will rise by 9% on a daily basis from July’s plan, Reuters calculations show.
Oil loadings from the three western ports in July were revised up by some 0.23 million bpd from the initial schedule to some 1.8 million bpd after Lukoil, Rosneft and Gazpromneft obtained additional loading slots.
Russia’s largest private oil company, Lukoil, ramped up seaborne exports last month as its supplies to Europe via the Druzhba pipeline are currently suspended.
For August, Russia’s offline primary oil refining capacity is seen declining by a third from July to 1.7 million tons, according to Reuters calculations based on data from industry sources.
Russia’s oil loadings are also capped by the state’s pledge to the OPEC+ group of oil-producing nations to cut output.
Source: XM
