Seaborne

Russian oil production up 5%; Maritime exports up 9.5%

Russia’s oil production rose nearly 5% in the first half of June from May, the Interfax news agency reported on Tuesday, citing a source familiar with the production statistics.

Average daily oil production, including condensate, was 1.46 million tonnes in the first 13 days of June, 68,000 tonnes above May levels, the news agency reported.

Russian oil companies, led by Rosneft ROSN.MM, were due to reopen wells they had shut down due to Western sanctions in June, as companies bank on a recovery in seasonal demand and sustained Asian buying, officials said. Reuters sources previously. Russia has diverted much of its oil exports to Asia since March amid looming Western sanctions.

Russia’s average daily oil exports rose 0.5% in the 13 days of June from the monthly average in May to 662,500 tonnes per day, Interfax quoted the source as saying. Russian oil exports by sea rose 9.5% from June 1-13 from May to 470,700 tonnes per day, while pipeline supplies fell 16.5% to 191,800 tonnes per day , Interfax said, citing the source.

Most of the countries that receive oil from Russia via pipelines, largely via the “Druzhba” pipeline that connects the Urals to European refineries, reduced their consumption from June 1 to 13 compared to May, but Hungary increased its purchases by 14% to 19,700 tons per day, based on data from the Interfax source.

European Union leaders have agreed to an embargo on imports of Russian crude oil that will take full effect by the end of 2022, but Hungary and two other landlocked states in Central Europe have been granted exemptions for their imports by pipeline. Read the full story

(Reuters)