In May 2022, as refinery repairs took place, Russian oil companies cut processing by 6.4% to about 715 thousand tons per day. This shift was reported by Kommersant, drawing on statistics familiar to industry insiders. The move reflected a deliberate pause in throughput to accommodate maintenance schedules, a pattern seen across the sector whenever refineries recalibrate operations for safety and efficiency. The daily refining figure for 24 days of May stood at 715.3 thousand tons, marking the year’s lowest level so far and signaling that maintenance peak season had arrived. With repair work largely completed in the first half of the month, the industry anticipated a ramp up in production in the following period as units returned to normal capacity. [Source: Kommersant]
The result was a notable dip in wholesale stock and energy markets. Fuel prices responded with a rise to new near-term highs as traders priced in tighter domestic output. Yet, a week later, prices began to ease. Market participants attributed this decline to higher stock availability prompted by the Ministry of Energy, which influenced demand and supply dynamics in the trading arena. An additional perspective from industry observers noted that refining margins likely compressed due to the damper-adjusted output, a development that could set the stage for firmer pricing at retail stations once refineries normalize operations. [Source: Kommersant]
Experts expect a stabilization of wholesale pricing if June sees a rebound in refinery throughput and product inventories. Nevertheless, the ultimate outcome will hinge on domestic demand trends and the balance between supply and refinery utilization. In practice, any improvement in refinery aftercare and maintenance scheduling tends to smooth the near-term market, though seasonal demand shifts and global influences remain significant. [Source: Kommersant]
On 4 May, Deputy Prime Minister Alexandra Novak announced that Russia was reducing daily oil production by 500,000 barrels compared with February levels. The plan, described as a voluntary cut, aligns with efforts to stay within the quotas set by OPEC. Independent sources have followed the development, highlighting how policy decisions intersect with market expectations and supply dynamics. The move underscores how state-level management of output can influence prices, refinery runs, and strategic planning for both domestic and international markets. [Source: Kommersant]