Daily Memo: Russian Oil Will Stay in Russia

A significant portion of Russia's oil exports will be used to meet domestic demand.

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Russia redirects exports. Russia’s Ministry of Energy instructed Russian oil companies to redirect a significant portion of oil products meant for export to the domestic market. Last month, Russia announced that it would suspend the import of oil products – namely, gasoline, diesel fuel, jet fuel, marine fuel and gas oils – from June 2 until Oct. 1 to protect the domestic market from cheap imports. To stabilize wholesale prices and avoid inflation, the government wants to establish a sufficient domestic supply of gasoline. The measures will also ensure adequate supplies are sent to refineries that could face shortages because of the production cuts required under the OPEC+ deal. Reduced oil production in Eastern Siberia has already raised the risk of shortages at the Khabarovsk Oil Refinery, which provides half the Far East’s gas and diesel. The Ministry of Energy expects the same amount of gasoline to be produced in June as was produced a year ago, even though a 10 percent decrease in demand over the same period is anticipated. U.S. boosts scrutiny of Chinese firms. The U.S. is taking steps to remove many Chinese firms from U.S. stock exchanges. On Thursday, the White House gave U.S. financial regulators […]

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