Since March 1, Russia has implemented a major energy adjustment that bans gasoline exports, a decision that will last for six months. According to the global network, in response to the surge in fuel demand for domestic spring agricultural production, the Russian side decided to increase diesel ** by 16%, and stressed that this move is to ensure the stability of oil prices in the domestic market.
* Temporary export restrictions to ensure the efficient allocation of domestic resources.
In the face of severe challenges, the fuel crisis in Russia has intensified, and shortages are likely to continue in the coming months. Since last year, there have been frequent shortages of gasoline and diesel across the country, especially for diesel, and the problem of difficulty in refueling in cities such as Lipetsk and Tula is prominent.
Crimea, Tatarstan and the Republic of Chuvash face similar difficulties, with gas stations often experiencing supply restrictions. Recently, Russia has responded aggressively, and export restrictions are seen as a potential solution.
As a major oil refining country in the world, Russia's strong refined oil production capacity made it one of the world's major countries, and its share of seaborne refined oil exports was once as high as 93%, up from 8% of **.
However, as the situation changes, these export figures are being put to the test.
Ukraine's precision drone tactics appear to be having a significant impact on Russia's energy industry. Since the beginning of February, Russia's large refineries have reportedly been hit one after another, causing production capacity to plummet by a third.
According to statistics, Russia's refining production fell to its lowest level in three months, and the two giants stopped work due to the attack, with an average daily loss of up to 1350,000 barrels, which is in stark contrast to December figures.
However, the Russian side insisted that Ukraine's rhetoric was misleading, emphasizing that domestic economic vitality is recovering strongly and that energy demand is surging along with increased economic activity.
The war accelerated the domestic industrial cycle, which was supposed to bring vitality, but because basic production could not keep up with the pace, it temporarily triggered a local gasoline ** tension. Interestingly, India's oil minister, Hadeep Singh Puri, revealed that some Russian energy companies are actively seeking Indian partners, possibly through joint ventures or direct acquisitions, to give Indian companies the opportunity to participate in Russian refineries.
This move not only meets India's own energy needs, but also refines excess oil into gasoline and diesel, which are exported to the United States and Europe, and thus achieves a significant increase in profitability.
As a global oil refining powerhouse, Russia was once a key force in refined oil products**, and its export volume once exceeded that of pipelines**, contributing lucrative energy revenues to the country's economy.
However, before the war, Russia's seaborne oil products accounted for 93%, which is higher than 8% for oil. Today, the European market is facing a significant shortage in the face of restrictions on diesel imports from Russia, which provides China with unprecedented opportunities.
China is expected to take over Europe's gap as the main diesel supplier, with exports of 400,000 to 600,000 barrels per day, a figure comparable to Europe's total dependence on Russia for imports in the past.
China, as the world's largest oil refining power, has always been a leader in the export of refined oil products. Our refining strength continued to climb and exceeded 93 last yearAn astonishing record of 600 million tonnes per year, ranking first in the world.
Domestic oil consumption and processing have reached a new high, and the consumption of refined oil has reached 39900 million tons, a year-on-year increase of 95%, especially at a time when diesel is in short supply in Europe, China's exports to Europe have surged.
In the first half of 2022, our diesel exports to Europe were negligible, but after the policy was relaxed in August, monthly exports soared to about 2 million tonnes, totalling 8770,000 tons, an astonishing increase compared to 2021, China's refined oil products have become the key for Europe to fill the Russian energy gap**.
Since October, we have increased our export quota** of refined oil products to Europe to meet their winter heating and electricity production needs. In 2022, the total export quota reached 39 million tons, and in 2023, this figure jumped to 42 million tons, indicating that China's refined oil exports will continue to grow steadily in the next few years to meet the diversified energy needs of the global market.
Faced with the logistical challenges caused by the long transportation distances in the East, Europe is actively expanding the large tanker leasing market to cope with the extended turnaround times. European companies are keenly aware that without the strong diesel production capacity of China and India as a supplement, it will be difficult for them to easily fill the gap of 500,000 barrels per day of Russian diesel in the short term.
China and India have done well in exporting diesel, especially in terms of profits, and when the best is good, the export profit per ton of diesel is even more than 600 yuan, but despite this, they are still crying with joy because of global demand and grasping this lucrative business opportunity.