Russian oil exports fall sharply in April

In April, Russian oil product exports hit a post-pandemic low, impacted by drone attacks and flooding.

Share:

Crise Exportations Pétrolières Russes

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Russian exports of petroleum products fell significantly in April, reaching their lowest levels since the pandemic was confined in 2020. According to data provided by S&P Global Commodities at Sea, marine loadings of diesel, fuel oil, naphtha and other refined products rose slightly in the second half of the month to average 1.94 million barrels per day (b/d), marking a decline of 360,000 b/d on March, and almost 700,000 b/d below January levels.

Impact of drone attacks

Russia’s refining capacities have been seriously affected by a series of Ukrainian drone attacks specifically targeting its western refineries. These attacks not only damaged facilities, but also led to the shutdown of the 116,000 b/d Orsk refinery for two weeks in April due to flooding. On April 27, one of the world’s largest drone attacks was launched, shooting down 66 drones over the Krasnodar region of Russia, damaging the Ilsky and Slavyansk refineries.

Repair and resilience

Russia is rapidly repairing damaged units. Currently, 600,000 b/d of refining capacity remains offline, down from a peak of over 1 million b/d the previous month. The Russian oil industry has demonstrated a remarkable ability to quickly restore affected capacity, often in as little as three weeks, according to S&P Global analysts.

Market impacts and adaptation strategies

Despite the attacks, Russia has put in place measures to limit the impact. This includes increasing operations at unaffected refineries and prioritizing shipments of petroleum products by rail to meet regional fuel shortages. In addition, the attacks had a moderate effect on market prices, with diesel crack spreads narrowing, reflecting a situation of sufficient stocks to cover weakened demand. Diesel crack spreads against Rotterdam-dated Brent fell below $16/b on May 1, down from $18.50/b in April.

Exports to India and other markets

The latest data show that Russian crude oil exports to India jumped to an 11-month high in April, reaching almost 2 million b/d, a significant increase of 350,000 b/d on the previous month. This contrasts with a reduction in flows to China and Turkey, illustrating a dynamic readjustment of export markets in response to sanctions and logistical constraints. In response to ongoing threats to shipping in the Red Sea, the volume of Russian oil at sea has declined since recent record levels, despite support for longer voyages around the Cape of Good Hope.

The crisis in Russian oil exports in April highlights the vulnerability and resilience of the country’s energy infrastructure. Despite the ongoing challenges posed by drone attacks and extreme weather conditions, Russia has shown an impressive ability to adapt quickly. The implications for world energy markets remain significant, with a particular focus on the evolution of trade relations and Russia’s ability to maintain its exports in a tense geopolitical context.

U.S. sanctions targeting Rosneft and Lukoil trigger a rebound in oil, while the European Union prepares a clampdown on liquefied natural gas and maritime logistics, with immediate repercussions for markets and Russia’s export chain.
Ten days before COP30, Brazil awarded five offshore oil blocks for over $19mn, confirming its deepwater development strategy despite environmental criticism.
Tripoli mise sur des partenariats avec des majors et jusqu’à 4 milliards $ d’investissements pour relancer sa production pétrolière, malgré un climat politique divisé.
Niger hardens its stance on energy sovereignty but avoids breaking with China National Petroleum Corporation, its main oil industry partner, in order to safeguard export revenues.
As Brent hovers near $60, growing opacity around OPEC’s output restrains a steeper decline in crude prices amid surplus warnings by the International Energy Agency.
Portuguese energy group Galp plans to finalise a strategic partnership for its offshore oil project Mopane in Namibia before the end of the year.
A traditional leader from the Niger Delta is seeking compensation before Shell’s onshore asset sale, citing decades of unaddressed pollution in his kingdom.
The Oxford Energy Institute study shows that signals from weekly positions and the Brent/WTI curve now favor contrarian strategies, in a market constrained by regulation and logistics affected by international sanctions. —
Russian company Russneft has shipped its first oil cargo to Georgia’s newly launched Kulevi refinery, despite the absence of formal diplomatic ties between Moscow and Tbilisi.
New Stratus Energy has signed a definitive agreement with Vultur Oil to acquire up to 32.5% interest in two onshore oil blocks located in the State of Bahia, Brazil, with an initial investment of $10mn.
Clearview Resources has completed the sale of all its shares to a listed oil company, exiting Canadian financial markets following shareholder and court approval.
The Brazilian government has approved an offshore drilling project led by Petrobras in the Equatorial Margin region, weeks before COP30 in Belém.
In Taft, a historic stronghold of black gold, Donald Trump's return to the presidency reopens the issue of California's restrictions on oil production and fuels renewed optimism among industry stakeholders.
Vantage Drilling halted a 260-day drilling contract for the vessel Platinum Explorer following a rapid evolution of international sanctions regimes that made the campaign non-compliant with the applicable legal framework shortly after it was signed.
Paratus Energy Services received $58mn through its subsidiary Fontis Energy in Mexico, initiating the repayment of arrears via a government-backed fund established to support investment projects and ensure supplier payments.
Washington ties the removal of additional duties to a verifiable decline in India’s imports of Russian crude, while New Delhi cites already-committed orders and supply stability for the domestic market.
The decline in imports and the rise in refining in September reduced China’s crude surplus to its lowest in eight months, opening the way for tactical buying as Brent slips below 61 dollars.
Chinese executive Zhou Xinhuai, 54, resigned from his post as chief executive of CNOOC Limited after holding the role since April 2022. A strategic reorganization is underway.
Texas-based SM Energy gains full support from its banking syndicate, maintaining a $3bn borrowing base and easing short-term debt maturity terms.
Halliburton and Aker BP have completed the first umbilical-less tubing hanger installation on the Norwegian continental shelf, paving the way for digitised offshore operations with reduced infrastructure.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.