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Russian seaborne oil product exports rose 10% m/m between May 1-15, according to industry data.

According to LSEG data and other market sources, Russia's seaborne exports of oil products rose 10% a month on average in the first fifteen days of May as key ports re-established fuel loadings. The release of fuel inventories accumulated during previous disruptions due to drone attacks was the main driver for fuel export growth, traders reported. However, May shipments were still limited by unplanned and seasonally-related refinery maintenance as well as rising domestic demand.

Primorsk is the largest port in Russia for the export of ultra-low sulphur (ULSD) diesel. In the first half, it loaded 710,000 tons of ULSD, which was essentially the same as the previous month. Ukraine has increased drone attacks on Russia's energy sector, targeting twice as many oil refineries since the beginning of the year. The major plants in Kirishi, western Russia, Nizhny Novgorod along the Volga and Perm near the Urals mountains were all targeted. Drone strikes in late March on the Baltic ports Primorsk & Ust-Luga caused fires to fuel tanks. Terminals were unable to handle oil products for several weeks. Market sources said that in May, fuel loadings at Baltic ports were gradually resumed, but not yet to full capacity. Ukrainian drones repeatedly attacked Russia's Black Sea Port of Tuapse, as well as the nearby Rosneft owned Tuapse Refinery last month. This forced a halt to oil processing and fuel-loading operations. The traders said that some exports had been rerouted into other Russian ports.

(source: Reuters)