Moscow: Russian diesel exports are expected to reach their highest monthly rate since 2016, according to Bloomberg on Monday. Despite Western sanctions and efforts to isolate Russia from the EU market, which was previously its largest buyer of diesel, the increase has occurred.
Despite the EU's February embargo on seaborne imports of Russian oil and petroleum products such as diesel, there has been no sign of Russia cutting exports or experiencing a customer shortage.
Russian diesel shipments totaled 1.5 million barrels per day in the first 19 days of March, according to Bloomberg, citing Vortexa tracking data. The figure is up significantly from the previous month.
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If current trends continue, "this month will see the highest data exports since the beginning of 2016," according to the outlet.
As traders expand into new markets, the majority of Russian diesel cargoes are destined for Turkey and Morocco. Other countries, including Tunisia, Brazil, and even Saudi Arabia, have increased their purchases of fuel from the sanctioned country.
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"Russia's refinery runs have remained high so far in March, allowing for robust diesel output," said Mikhail Turukalov, an independent US-based analyst. Domestic producers "seem quite confident they can sell their volumes to foreign buyers - the discounts they offer are deep enough, and there are new markets for the fuel," he added.
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The EU embargo on Russian oil products prompted Moscow to reroute its trade flows, with diesel cargoes now destined for Africa, Asia, and the Middle East, as well as ship-to-ship loadings, rather than Europe.