Russia Could Increase Diesel Exports to 3–3.5 Million Tonnes a Month

Russia could increase diesel exports to 3–3.5 million tonnes a month by the end of the year, Russian Deputy Prime Minister Alexander Novak said.

“We have the capacity to increase diesel exports and, as we have said before, by the end of the year we could reach monthly deliveries of 3.5 million tonnes to global markets, as we did before the crisis.

These additional supplies from Russia to global markets will help increase volumes and partially balance supply and demand. We can already see this, including in global diesel prices, which have fallen by around 5–6%,” he said.

Earlier, US President Donald Trump said he had reached an agreement with Putin on diesel supplies. Following this, the US Treasury Department issued a licence providing for an exemption from sanctions restrictions on Russian diesel supplies for several months.

Novak also noted that oil supplies from the Persian Gulf have yet to recover.

“Today, on the sidelines of the World Petroleum Congress in Riyadh, a meeting of ministers took place, including ministers from OPEC+ countries. We discussed the current situation on the global oil market and how the agreement is being implemented.

Importantly, we noted today that around 6–7 million barrels of oil a day are still not reaching global markets through the Strait of Hormuz. This is creating a significant imbalance between supply and demand and is contributing to the considerable volatility currently observed in the market,” he said.