Russia to extend diesel export ban, use quotas to fulfil US deal, sources say
USO•Russia will extend its diesel export ban through year-end while raising export quotas to 2 million metric tons in November to meet a diesel supply commitment to the US, sources said.
1. Ban and quotas
Russia will extend its diesel export ban, which is due to expire on October 31, through the end of the year. November quotas will quadruple from October levels to 2 million metric tons, or about 0.5 million barrels per day, two people familiar with the discussions said.
2. Shipments and production
Deputy Prime Minister Alexander Novak said three tankers carrying Russian diesel to export markets were already under way and a fourth would sail on October 28. The sources said refinery utilisation rose 25% at the end of October from the start of the month as drone attacks on facilities subsided.
3. Export limits
A government order expected in early November would expand the list of refiners exempt from the ban and set new export limits. If quotas are used up quickly, the government could consider raising them further, the sources said. Nominal diesel production exceeds domestic consumption by about 40%, and shipments under existing intergovernmental agreements will continue.
