Page 123 - RusRPTApr24

14.3% year-on-year. Prices for gasoline are rising on the stock exchange, through which a quarter of all fuel is sold. But, for the moment, consumer prices remain stable: they increased 0.08% last week, and have gone up 0.63% since the start of the year.
More than fifth of global refining capacity is at risk of closure as gasoline margins weaken and the pressure to reduce carbon emissions mounts, Reuters reported citing data from the energy consulting company Wood Mackenzie.
The largest number of them are in Europe and China, where oil refining capacity with a production volume of approximately 3.9 million barrels per day is under threat, the company reported after studying the situation at 465 oil refineries.
Some 30 European refineries have already closed since 2009, according to industry organization Concawe.
This spate of closures have been brought on by competition from newer and more complex plants in the Middle East and Asia as well as the impact of the COVID-19 pandemic, Reuters wrote.
Gasoline margins are expected to weaken by the end of this decade as demand declines and sanctions on Russia ease while expected carbon taxes should also start to bite, the Wood Mackenzie analysts say.
The oil refining industry of the Russian Federation slowed by 400,000 barrels per day after Ukraine’s UAV attacks in March. The average daily rate of oil processing in Russia fell to the lowest weekly level in 10 months after Ukrainian drone attacks on several oil refineries. From March 14 to 20, Russian refineries processed 5.03 million barrels of oil daily, more than 400,000 barrels per day less than the average at the beginning of the month.
Ukraine continued attacking Russian oil refineries with drones hitting six refineries between March 12 and 17. The attacks have affected, by some estimates, 11% of Russia’s total oil refining capacity, putting upward pressure on domestic prices and endangering exports.
Earlier, these attacks forced the Russian government to suspend gasoline exports until September in order to ensure that a seasonal peak in domestic demand is satisfied. Drones have twice tried to hit the Kirishi refinery, so far without success. Kirishi is responsible for 7% of Russia’s fuel production, and hitting it could cause more significant imbalances in the market.
123 RUSSIA Country Report April 2024 www.intellinews.com