Russia’s Diesel Exports Crash to Multiyear-Low amid Tight Global Market

Russia's diesel exports plummeted to a multi-year low of 80,000 barrels per day within the first week of August, as the country imposed further restrictions on fuel shipments. The decline came as relentless Ukrainian drone attacks on Russian refineries triggered a fuel crisis. This year, Russia shipped just a fraction of its previous output, down from 1 million bpd last year to the current level.

The situation worsened due to prolonged gasoline and diesel shortages over three months, with many processing sites offline due to the Ukrainian campaign targeting Russian refining infrastructure. The slump in fuel supply and limited exports from the Persian Gulf further strained refined petroleum markets more than the crude market.

Global refinery crude throughputs remained below pre-pandemic levels, with an estimated 80.9 million bpd in July, according to the International Energy Agency (IEA). Global petroleum product trade by sea dropped by 3.8 million bpd, primarily due to reduced diesel and jet fuel exports from Russia and the Middle East. Tighter markets in light and middle distillates boosted cracks and margins in the Atlantic Basin.

Despite U.S. fuel exports rising by 700,000 bpd in July, the overall global seaborne petroleum trade saw a significant decline.