Page 132 - RusRPTJul23

Kommersant reported on Friday, citing sources familiar with the data. The Russian Energy Ministry last month asked oil companies to reduce their exports and raise supply on the domestic market, according to Kommersant's sources. After a sharp rise in wholesale gasoline prices in May and recommendations from the Energy Ministry to oil firms to curb exports, Russia's daily gasoline exports in the first six days of June were four times lower than the levels at the end of May, Kommersant reports. Russian gasoline exports surged in the first quarter of this year compared to the same period in 2022, as Moscow placed growing volumes of fuels with African customers after the EU embargo on seaborne imports of Russia's fuels. Russian gasoline exports were estimated at 1.9mn tonnes in the first quarter of 2023, up compared to 1.3mn tonnes exported in the same period of 2022, per Refinitiv data cited by Reuters.
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China's oil demand recovery has surpassed expectations in the first half of this year, despite disappointing macro-economic data. Energy industry experts and players remain optimistic about China's domestic oil demand, anticipating further growth, although the growth rate may have slowed down in May and June.
In April, China's apparent oil demand, excluding inventories, exceeded 16 million barrels per day for the first time on record, according to Energy Intelligence. However, detailed figures for May are not yet available, and China's refinery throughput decreased by 270,000 barrels per day in May due to planned maintenance. June is also expected to witness lower refining runs.
Notably, China's gasoline and diesel consumption both declined in May compared to April. State-run refineries are expected to reduce their daily crude throughputs in June compared to May, based on the plans of Chinese oil majors.
China's economic data has shown weaknesses since March, and May's indicators have failed to provide reassurance to the markets. Property sales, which experienced a small recovery earlier this year, have faded, and China's exports, a significant contributor to its economy, are also exhibiting signs of weakness.
Despite these challenges, the International Energy Agency (IEA) has increased its Chinese demand forecast to a record-high of 1.485 million barrels per day for 2023, up from 1.3 million barrels per day in May.
According to an analyst from a China-based consultancy, crude imports in China are projected to reach a record 558 million tons (11.20 million barrels per day) this year. Additionally, refining runs are expected to increase by 9.4% compared to last year, reaching an unprecedented 740 million tons or 14.96
132 RUSSIA Country Report July 2023 www.intellinews.com