Ukrainian drone strikes slash Russia's seaborne oil products exports

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Russia's seaborne oil products exports fell 15 per cent month on month to about 3.3 million tonnes in the first 15 days of June, hit by unplanned refinery maintenance after repeated Ukrainian drone attacks, according to LSEG data and market sources.

Diesel loadings from the Baltic port of Primorsk, Russia's largest outlet for exports of ultra-low sulphur diesel (ULSD), dropped to 520,000 tonnes in the first half of June, down 18 per cent from the same period in May, shipping data showed.

Ukraine has intensified drone attacks on Russia's energy infrastructure, doubling the number of oil refineries targeted since the start of the year.

Russia's oil production is lower than at the start of the year, Deputy Prime Minister Alexander Novak said recently, blaming unplanned refinery maintenance.

The Kirishi refinery in western Russia, Lukoil-owned NORSI and Rosneft's Ryazan refinery were among those hit in May, reducing crude processing and fuel output.

Rising domestic demand ahead of the summer agricultural season and holiday driving has also reduced export loadings, traders said.

With drone strikes continuing in June, disrupting processing at TANECO, Kuibyshev and Saratov refineries and other energy facilities, market sources expect fuel exports to fall further by the end of the month.

Russia could consider a diesel export ban if necessary, Novak has said previously.

Turkey, India, Saudi Arabia and Brazil, along with Singapore and other Asian countries, have been the main buyers of Russian seaborne oil products so far this month, data from market sources showed.

(Reporting by Reuters in Moscow Editing by Mark Potter)

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