Reuters: Russian Refiners Raise Diesel Output After US Export Deal

Russian oil refineries raised diesel production in October after the government granted export quotas under a supply deal the Kremlin struck with the United States, Reuters reported, citing two industry sources close to the matter, according to European Pravda.

Traders said that from 1 October the Russian government allowed exemptions to the existing diesel export ban, allocating quotas that let Russia supply fuel under the deal with the US. Since the ban took effect in August, Russian oil companies had to cut output to meet domestic demand, while also limiting supplies to Central Asian countries under intergovernmental agreements.

The numbers

Industry sources said Russian diesel production fell in the first half of October to about 160,000 tonnes per day from 175,000 tonnes per day in September. After the new export quotas were approved in the middle of the month, output began to rise toward 180,000 tonnes per day.

The deal behind it

Russia agreed to lift its self-imposed ban on diesel exports and supply the fuel to world markets, including the US, following an understanding between Vladimir Putin and Donald Trump on 9 October. Earlier, a bipartisan group of 12 US senators wrote to Trump demanding that he cancel the newly concluded deal that lets Russian-origin diesel onto world markets. For wider context see Business.