EMEA News
Russian Fuel Oil Production Continues Its Decline
Russian fuel oil production has continued its decline since the beginning of the year, falling from 6.1 million tonnes in January to 4.29 million tonnes during the month of May, according to data from Bloomberg.
Higher export duties have largely been credited with recent decline.
Meanwhile, tax incentives are said to have encouraged the Russian producers to increase crude output and undertake refinery upgrades.
As a result, Russian crude exports expected to see record highs this year, increasing competition in Europe alongside growing Iranian shipments to the region.
According to data from Russia's Energy Ministry, the country's crude exports are said to have swelled 4.9 percent year on year in the first half of 2016, reaching to 5.55 million barrels per day (bpd).
In June, Russia's crude output, which has increased every month since July 2014, is said to have climbed 1.14 percent year on year, reaching 10.843 million bpd.
"If production remains steady, then it will likely be a record year for exports," said Christopher Haines, head of oil and gas at BMI Research, adding: "this should mean competition is strong, especially with Iran sending more oil into southern Europe."
As Ship & Bunker reported in April, Russia said it was prepared to push oil production to "historic highs" following the collapse of oil freeze talks in Doha.
