Russian weekly gasoline output hits 2020 high

Russia's weekly gasoline output hit its highest level this year in the week to 14 July, and deliveries into the domestic market were the highest since September 2019.

Russia produced 801,000t of gasoline over the 8-14 July period, according to energy ministry information agency CDU-TEK, up by around 5pc from the previous week. This is the highest since 18-24 December and is above the 799,300t of late March, after which production fell for six consecutive weeks as the Covid-19 pandemic reduced demand.

Output is now 60pc above the nadir of 502,000t.

The energy ministry has said it expects overall July gasoline production to exceed pre-Covid levels this month, at 3.55mn t. Production was 3.45mn t in July 2019. Russian refineries ramped up gasoline output in June, after the ministry called on them to raise production by 30pc from May and prioritise domestic sales over exports in order to ensure that rising demand would be met.

Deliveries of gasoline into the Russian market reached 702,000t over 8-14 July, the highest since 28 August–3 September. Consumption has increased significantly since the peak of the pandemic — deliveries into the domestic market over 8-14 July were up by almost 80pc from their lowest point of 393,000t in early May.

Increasing refined products demand and the drive to produce more gasoline has seen refiners consume more crude. Crude deliveries through the Transneft system to Russia's refineries could increase by as much as 6pc month-on-month in July, to 4.62mn b/d.

Russian diesel production fell by around 4pc on the week to 1.33mn t in the 8-14 July period. Deliveries of diesel into the domestic market fell by around 9pc to 746,000t. The prior week had been the highest since late October.

Russian diesel exports fell in June, with rising domestic demand and refinery maintenance weighed on loadings. That trend could continue into July, with exports from Primorsk set below 1mn t for the first time since September and a fifth consecutive decrease in scheduled monthly loadings.

Russian gasoline stocks rose by around 54,000t to 1.56mnt as of 13 July, and diesel inventories rose by around 40,000t from week-earlier levels to 2.62mn t.

By Robert Harvey