Oil prices have taken a hit as Russia’s refined fuel exports continued their upward trajectory over the past week.
Market players and experts are keenly examining all available data to assess how closely Russia is adhering to its commitment to slash its production by 500,000 barrels per day.
However, the task has become more challenging since Moscow decided to classify production data as classified information, a move that followed the Ukraine conflict.
Crude consignments, though still high, saw a significant drop in the most recent week due to a decrease in flows from its principal Baltic Sea port, likely due to maintenance at the site.
On the other hand, the most recent week saw a surge in refined fuel shipments by over 200,000 barrels daily, as per data from analytics company Vortexa. The majority of this spike originated from diesel.
The total refined fuel flows were up 14% from the same period last year. This rebound follows a seven-month low recorded in May when routine refinery maintenance was underway.
Brent crude, the global standard, has witnessed a 1.3% drop, moving towards $73 a barrel, while US-produced West Texas Intermediate has similarly dipped 1.3% towards $68.
New York’s oil remains on course for its first consecutive quarterly loss since 2019, in part due to China’s sluggish economic rebound and the US Federal Reserve’s robust monetary tightening.
