Vessels crossing Strait of Hormuz drop to 5 per day over weekend

Russia's refining capacity has been severely impacted by Ukrainian drone attacks on its energy infrastructure, forcing the country to import gasoline to meet domestic demand. Indian refiners have become a major supplier, shipping nearly 1 million barrels of gasoline to Russia in the past two months, with most shipments originating from the Vadinar refinery in Gujarat, operated by Nayara Energy, which has a 50% stake owned by Russia's state-owned oil company Rosneft.

In August, Russia's seaborne gasoline imports reached a record of around 125,000 barrels per day, equivalent to about 470,000 tonnes for the month. This surge in imports was driven by the widening gap between domestic fuel production and demand in Russia. The disruption caused by the attacks led to a 70% drop in domestic gasoline production, prompting Russia to turn to external sources for fuel.

India's growing role as a gasoline supplier coincides with its increased purchases of Russian crude oil, with India importing over 2.6 million barrels per day of Russian crude in June and July. Some of the gasoline shipped from India to Russia may have been produced using Russian crude, which was later processed into petroleum products and exported back to Russia.

Despite the increase in gasoline imports, Russia's diesel exports have remained severely restricted due to the export bans, refinery damage, and disruptions at fuel terminals. Russia's seaborne diesel and gasoil exports were around 150,000 barrels per day through August 25, a decrease compared to the previous month and five-year seasonal average.

Experts predict that Russia will likely continue importing some gasoline in the near term due to historically lower gasoline-to-diesel production yields.