Russian Oil Refineries Resume Exchange Fuel Sales, but Volumes Remain Low Amid Crisis

Russian oil refineries with a combined processing capacity of about 40 million tons per year have resumed trading on the St. Petersburg International Mercantile Exchange, the business daily Kommersant reports, citing a review by Platts. However, some large facilities processing over 45 million tons annually have not yet returned.

The bulk of fuel continues to move through off-exchange channels, a trend that has intensified recently, according to Open Oil Market CEO Sergei Tereshkin. Wholesale volumes are rising, but unfilled buy orders for gasoline still exceed 80%. The most acute shortage is in the AI-98/AI-100 segment, where unmet demand stands at 92.9%.

An industry source told Kommersant that the situation at gas stations is improving, with Belarusian refineries and possibly vertically integrated oil companies supplying independent station networks. "The peak of the shortage has probably already passed," the source said.

Analysts caution against expecting a quick recovery. Sergei Frolov, managing partner of NEFT Research, said supply-demand balance cannot be restored instantly, and a noticeable production increase will only be possible closer to the end of the year.

During the crisis, Russia's largest gasoline producers effectively stopped selling fuel on the exchange, directing it to their own stations. Independent networks complained about having nowhere to purchase fuel and noted sharp wholesale price increases that would soon hit retail.

The fuel crisis began in May, largely caused by Ukrainian drone strikes on Russian refineries, forcing temporary or complete production halts. Residents faced multi-hour lines for fuel, and regions imposed restrictions such as per-vehicle liter limits and QR codes.