That’s down more than 400,000 barrels a day from the average for the first 13 days of the month...
https://twitter.com/TOGAjano21/status/1771478743447437642
That’s down more than 400,000 barrels a day from the average for the first 13 days of the month...
https://twitter.com/TOGAjano21/status/1771478743447437642
Biden Admin wants Ukraine to halt attacks on Russian refineries, to keep gasoline prices lower in the US ahead of elections. Ukrainian attacks took about ten percent of Russian refining offline in recent weeks.
Might be prudent to Shoot and look, before potentially overshooting, and incurring some unexpected disruptions.
Might be useful to have the credible threat of major destruction of refining for leverage.
OilPrice.com reports:
“The United States has repeatedly urged Ukraine to halt its drone attacks on Russian oil refineries due to Washington’s assessment that the strikes could led to Russian retaliation and push up global oil prices, the Financial Times reported on Friday...
...The attacks have reduced Russia’s refining capacity and driven oil prices higher this month. Early on Friday, Brent Crude prices traded at above $85 per barrel, while the U.S. benchmark, WTI Crude, was at $81 per barrel, which is set to further raise U.S. gasoline prices amid rising demand, refinery maintenance, and falling stocks.
With gasoline demand rising, U.S. gasoline prices increased last week for a third week in a row, GasBuddy data showed earlier this week.
This doesn’t look good at all for the U.S. Administration in an election year in which President Joe Biden is expected to seek re-election in November.
Ukrainian drone attacks on Russian refineries in recent weeks have taken out as much as 600,000 barrels in daily processing capacity in Russia, according to commodity trading major Gunvor. (about 10% of the long term average (normal) throughput, of around 6 million bpd)
“It is significant because obviously this is gonna hit the distillate exports straight away,” Gunvor chief executive Torbjörn Törnqvist told Bloomberg on the sidelines of CERAWeek.
“So that will probably take down exports by a couple of hundred thousand barrels, so to me it’s a distillate problem,” the executive added.
Lower refining capacity in the second quarter, due to refinery maintenance and emergency repairs following the attacks, could be one of the reasons why Russia said it would focus on cuts to oil production instead of exports in its voluntary supply reduction as part of OPEC+ in the second quarter, analysts say.”