July 10 (Reuters) – Russia’s primary refinery idle rate will exceed an expected 38 percent in July, according to industry sources and Reuters calculations, complicating Russia’s pledge to cut oil exports.
Data show that in July Russia’s primary refining idle capacity has been raised from the previous plan to 2.326 million tons, but it has dropped sharply from June, when the idle capacity in June was 3.966 million tons.
The upward revision to the spare capacity forecast for July came as some large refiners extended the period for maintenance or storage of units. Russian Deputy Prime Minister Novak announced last week that Russia would reduce oil exports by 500,000 barrels per day in August due to weak global oil prices.
Russia needs to keep its domestic market well supplied with fuel to meet rising demand during the summer driving season, while having to contend with soaring wholesale gasoline prices triggered by supply shortages and massive idling of refining capacity.