Reuters: Russia’s diesel output drops 10% in May

Diesel fuel production in Russia fell by 10% in May, Reuters reports.

According to the agency’s analysts, the reduction or temporary shutdown of production was driven by Ukrainian drone strikes on oil refineries. The authors based this assessment on their own analysis. They noted that diesel output had also declined by 10% in April.

The Russian government is considering a ban on fuel exports. However, demand remains high in the agricultural sector, the report added.

Sources suggest that a full export ban is unlikely, as such restrictions could further complicate refinery operations.

Reuters analysts also argue that reduced production caused by drone attacks may limit Russia’s ability to benefit from rising oil prices linked to the war with Iran. They added that the conflict in Iran has diverted Washington’s attention from efforts to resolve the war in Ukraine.

By Jeyhun Aghazada