Russia's diesel and gasoil exports crashed to just 80,000 barrels per day in the first week of August, a multiyear low, as Moscow extends export restrictions amid a fuel crisis triggered by Ukrainian drone strikes on its refineries. The squeeze is tightening global middle-distillate markets even more than the crude market.
Russia's diesel and gasoil exports crashed to just 80,000 barrels per day between August 1 and 7, the lowest level in many years. Moscow has extended restrictions on diesel exports amid a fuel crisis triggered by sustained Ukrainian drone attacks on Russian refineries.
The drop is stark against recent history. Russia shipped as many as 1 million barrels per day of diesel and gasoil last year, so the current flow represents a fraction of that volume. Ukraine has pursued a relentless drone campaign against Russian refining infrastructure and supply routes this year, aiming to pressure Vladimir Putin into peace negotiations. As a result, Russia has faced gasoline and diesel shortages for over three months during peak seasonal demand, as strikes forced large processing sites offline through spring and summer.
Refined fuel markets tighten faster than crude oil
The slump in Russian supply, combined with fuel struggling to leave the Persian Gulf, is squeezing refined petroleum markets harder than the crude oil market. Global refinery throughputs rose in July but stayed nearly 5 million barrels per day below year-ago levels at 80.9 million barrels per day, according to the International Energy Agency's latest Oil Market Report. The IEA now expects global throughputs to fall by 2.5 million barrels per day on average in 2026, then rebound by 3.5 million barrels per day in 2027.
Meanwhile, the agency said tighter conditions have "boosted cracks and margins in the Atlantic Basin to record highs", according to the IEA.
Seaborne fuel trade shrinks despite US export gains
Even as U.S. fuel exports rose by about 700,000 barrels per day in July from a year earlier, that gain wasn't enough to offset the broader decline. Global seaborne trade in petroleum products fell by 3.8 million barrels per day, the IEA said, as diesel and jet fuel exports from both Russia and the Middle East plunged.
Source: Oilprice.com
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