Page 94 - RusRPTDec23

Malaysia likely to demonstrate the highest drop in production.
Saudi Arabia has confirmed its intent to prolong its voluntary reduction of oil production by 1mn barrels per day until the end of the year, Saudi state news agency SPA reported on November 5 citing an official Energy Ministry source. The source also said that Saudi Arabia would analyze the market situation in December and use the data to decide wether it would prolong the voluntary reduction, deepen the cut even further, or raise production, the news agency reported. Russian Deputy Energy Minister Alexander Novak told reporters on November 5 that the country would continue with reduction of exports of oil and oil products by a combined figure of 300,000 barrels per day until the end of December as well. Also, Russia has cut its oil production by an additional 500,000 barrels in March as compared with the February oil output of 9.95mn barrels per day, and the measure will be in effect until the end of December 2024. In September 2023, Novak said that the government would revise the additional voluntary production cut every month depending on the condition of the global oil market.
Russia’s diesel exports set to surge after export ban lifting. Russia plans to more than double diesel shipments from its main western ports next month as the country's refineries process more crude, the domestic fuel market stabilizes and the export ban is lifted. Loadings from Russian ports on the Black and Baltic Seas, including some batches originating in Belarus, are set at a total 2.16mn tonnes for November, according to industry data. That’s 56% above the October plan and Russia’s highest planned exports in three months. Earlier in September, Russia imposed a temporary export ban on most diesel fuels to curb skyrocketing fuel prices. Although most restrictions were lifted two weeks later, the government ordered key refineries to keep half of their diesel at home to stabilize the market.
Prompt availability of spot diesel in Germany is declining from a fairly low base as maintenance and refinery issues coincide with a scarcity of barges on the Rhine river in November.
Production issues at Bayernoil's 207,000 b/d Neustadt-Vohburg refinery and maintenance work at other German plants have been compounded by a supplier severely restricting spot diesel from Shell's 334,000 b/d Rhineland refinery complex. The reason for this is unclear, and Shell has not commented.
Supply is also reduced further up the Rhine at the Miro consortium's 299,000 b/d Karlsruhe refinery. Several suppliers are limiting their spot supply to one or two trucks per customer, according to traders, and one shareholder is no longer offering any product on a spot basis. The refinery has been partially shut down since 12 October, for maintenance work that is scheduled to be completed by the end of November.
94 RUSSIA Country Report December 2023 www.intellinews.com