Russia is reportedly planning to reduce oil exports from its sea ports in January by 100,000 to 200,000 barrels per day (bpd) compared to December levels. The decision is attributed to increased throughput at Russian refineries, prompting a reduction in exports, Reuters reported.
The quarterly export schedule for the first quarter of 2024 is expected to be lower than the October-December period, according to industry sources. The quarterly export schedule is a three-month export plan for Russian oil companies issued ahead of a new quarter allowing them to plan supplies via pipeline monopoly’s Transneft system.
“We estimate Russia’s average seaborne oil exports at 3.5 million bpd so far in December, in January we expect it to fall due to increased refining”, – said Viktor Katona, senior oil market analyst at Kpler consulting.
“The average throughput at oil refineries in Russia was at 5.5 million bpd in October and last week it increased to 5.7 million bpd”, – Katona added.
The decline in oil loadings is anticipated mainly in Russia’s western ports, including Primorsk, Ust-Luga, and Novorossiisk.
Russia has committed to voluntary cuts in oil and product exports as part of the OPEC+ cooperation agreement, with a target reduction of 200,000 to 500,000 bpd in the first quarter of 2024.