Russia’s annual fuel oil exports seen declining by 8 mln T

Russia’s annual production and exports of fuel oil are expected to fall 8 million tonnes, or by almost a fifth from 2020 levels, as refineries focus on producing higher-grade fuel, according to Reuters calculations based on data from companies and sources.

Russian oil refineries plan to put on stream new advanced units to improve refining with a total capacity of 8 million tonnes this year, lifting middle and light distillates output at the expense of fuel oil production and exports.

According to the dispatching unit of Russian Energy Ministry data, published by Refinitiv, Russian oil refineries produced 41.6 million tonnes of fuel oil and exported 31.6 million in 2020.

Market sources say as domestic fuel oil consumption is stable, the reduction in output will result in an equivalent decline of exports. Conversely, overseas supplies of light products may increase.

According to Reuters calculations, Russian oil refineries will this year increase catalytic cracking capacity by 9%, hydrocracking capacity by 10%, and delayed coking by 32% thanks to improved capacity.
Source: Reuters (Reporting by Maxim Nazarov; Writing by Vladimir Soldatkin; Editing by Jan Harvey)