Russian oil product exports shoot up – Bloomberg

Russia’s refined fuel exports have surged to their highest level in nearly a year, even as the US imposed new sanctions on the country’s energy sector last week, Bloomberg reported on Thursday.

Seaborne shipments of Russian petroleum products hit an 11-month high, averaging 2.5 million barrels per day (bpd) in the first ten days of January, the outlet said, citing data from analytics firm Vortexa. The surge marks a 12% increase compared to December’s daily average and represents the highest level since February 2024, according to the report.

The US slapped a new round of sanctions on Russia last week in coordination with the UK. The measures targeted major Russian oil companies such as Gazprom Neft and Surgutneftegas, as well as dozens of vessels allegedly used to transport Russian oil in defiance of Western restrictions, which the US has described as a ‘shadow fleet’.

Moscow has condemned the sanctions, calling them “illegal,” with Kremlin spokesman Dmitry Peskov warning that they could destabilize global energy markets.

The latest round of sanctions targets more than 180 tankers allegedly involved in Russian trade, primarily focusing on crude oil shipments. However, only about 4% of petroleum products exported between January 1 and 10 were transported on sanctioned tankers, data from Vortexa, showed. Additionally, there has been no deviation observed in the voyages of these vessels.

The recent surge in Russia’s petroleum products exports is primarily driven by surging shipments of diesel and fuel oil, the outlet said. Revenue gains from fuel exports in December exceeded the decline in crude oil earnings, supported by soaring gasoil flows and higher prices, Bloomberg said citing the International Energy Agency (IEA).

Diesel and gasoil exports, which make up about 40% of Russia’s refined-fuel shipments, jumped 17% from December levels to 1.08 million bpd, the highest since last February. Shipments from Baltic ports rose by over 50%, contributing to the growth, data showed.

Fuel oil flows also increased, reaching 792,000 bpd which represented a 19% increase and the highest level since July 2023. Volumes to Africa saw the most significant rise.