As was widely speculated in recent days, Russia banned exports of diesel in order to avoid domestic shortages after a flurry of attacks by Ukrainian drones on the nation’s refineries.
“Today we introduced ban on exports of diesel,” Deputy Prime Minister Alexander Novak said at the government’s meeting with President Vladimir Putin.
The decision will further squeeze global fuel markets, which are already under pressure due to the supply disruption caused by the Iran war. Russia's decision means that the recent surge in the diesel margins to record highs, which have completely disconnected with oil prices, are set to rise even more.
Last year, Russia accounted for about 11% of global supplies of diesel, according to data compiled by Bloomberg from analytics firm Vortexa.
The logical corollary is what the DOE reported earlier today, namely that US product exports - which include diesel and other refined products - surged to a record high.
Exports of the fuel were previously banned only for traders and other sellers in Russia that don’t make their own fuel.
The diesel ban comes on top of existing restrictions on most shipments of gasoline and jet fuel. Russia has been struggling to ensure domestic oil-product supplies and to contain prices at the pump after drone attacks damaged several refineries.
Ukraine’s intensified strikes pushed Russia’s crude-processing rates to multi-year lows. Many regions have been forced to impose some degree of fuel rationing because of the disruptions.
Even before the ban, Rus
