Russia's idled oil refining capacity grows - Reuters
Russia's oil refining capacity utilization has fallen to its lowest level since at least 2010, as sanctions and a drop in demand for refined products weigh on the industry.
According to Reuters, citing industry sources, Russia's oil refining capacity utilization fell to 64% in May, down from 72% in April. This is the lowest level since at least 2010, when Reuters began tracking the data.
The decline in refining capacity utilization is due to a number of factors, including sanctions imposed on Russia by the United States and the European Union, which have made it difficult for Russian refiners to export their products. In addition, the demand for refined products has fallen in recent months due to the global economic slowdown and the shift towards renewable energy sources.
The decline in refining capacity utilization is a major challenge for the Russian oil industry. Refining is a key part of the oil value chain, as it converts crude oil into products that can be used by consumers, such as gasoline, diesel, and jet fuel. The decline in refining capacity utilization is likely to lead to a decrease in Russia's oil production, as refiners will be unable to process as much crude oil.
The Russian government is aware of the challenges facing the oil refining industry and is taking steps to address them. In May, the government announced a number of measures to support the industry, including tax breaks and subsidies. However, it is unclear whether these measures will be enough to offset the impact of sanctions and the decline in demand for refined products.
