Oil Daily | Russian Refineries Cut Operations Amid Export Restrictions and Rising Prices, Revenue Falls 14%

【Oil-Producing Countries Dynamics】

Russia's Gazprom has halted natural gas supplies to Austria due to a €230 million arbitration dispute with Austria's OMV AG. Despite the disruption, OMV assures it can meet supply obligations through alternative sources, highlighting Europe's interconnected gas network and its efforts to reduce reliance on Gazprom. The timing is critical as winter approaches, stressing the fragility of Europe's energy security.

Russian refineries are reducing operations due to export restrictions, rising oil prices, sanctions, and Ukrainian attacks, causing losses. The Tuapse refinery halted production in October but resumed in November. This reduction in processing rates has led to decreased fuel exports, cutting Russia's revenue from oil product exports by 14% in October. Russia may lift the gasoline export ban, given stable domestic prices.


【Latest Oil Policies】

Russia is considering lifting its gasoline export ban, originally set to last until the year's end, as domestic fuel prices remain stable. This decision comes amid reduced refinery operations and decreased fuel exports, impacting Russia's export revenues.


【Others】

China could lead global climate change efforts if the U.S. steps back under President Trump, according to South Africa’s Environment Minister. Despite being the largest greenhouse gas emitter, China is investing in renewable energy but continues coal power generation for energy security. China's contribution to climate finance remains a debated issue.