Turkiye stays top destination for Russian June diesel loadings

MOSCOW: Turkiye will again be the top destination for Russian diesel exports in June, while total shipments are set to rise after seasonal refinery maintenance, traders said and Refinitiv Eikon data showed, according to Reuters.

Russia’s estimated offline primary oil refining capacity for June could total 4.029 million tons versus 4.95 million tons in May, Refinitiv data shows.

Since the full EU embargo on Russian oil products took effect on Feb. 5, traders have diverted diesel export supplies from Russian ports to Africa, Asia and the Middle East instead of Europe, which was previously the main buyer.

In June to date, Russia has sent about 0.9 million tons of diesel to Turkiye versus 1 million tons the previous month, Refinitiv data shows.

About 320,000 tons of that are still in transit with the port of discharge not yet confirmed.

Brazil is also among the top destinations of Russian seaborne diesel exports, totalling about 280,000 tons since the start of this month versus 450,000 tons in May, according to Revinitiv data.

In June to date, about 550,000 tons of diesel have headed from Russian ports to Africa, mainly to Ghana, Morocco and Togo.

In May, diesel loadings from Russian ports to Africa totalled about 575,000 tons, Reuters calculations based on Refinitiv data showed.

Nearly 375,000 tons of Russian diesel are destined in June for ship-to-ship loadings near the Greek port of Kalamata and also near Malta, Refinitiv data shows. The final destinations for these cargoes are not yet known. Most of those cargoes end up in Turkiye and Middle Eastern countries, market sources said.

In May Russia sent about 410,000 tons of diesel to Saudi Arabia, but so far in June there is no sign of cargoes to this destination, Refinitiv data indicated.

All the shipping data above was by cargo departure.

Brent crude futures are down about 14 percent since the start of the year as rising interest rates hit investor appetite, while China’s promising economic recovery has faltered after several months of softer-than-expected consumption, production and property market data.

Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting production cuts by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.

While a failed mutiny by mercenaries in Russia over the weekend has raised concerns about political instability and pushed up oil prices, none of the industry executives and officials speaking on the first day of the Energy Asia conference in Kuala Lumpur on Monday mentioned it during their onstage remarks.

“There’s not much geopolitical impact on the market now. It is dominated by economics, not geopolitics,” Daniel Yergin, vice chairman of S&P Global, said on the sidelines of the event.