Russian Refining Capacity Hit by Ukrainian Drone Strikes, Forcing Fuel Imports

According to Reuters, Ukrainian drone attacks have damaged Russian oil refining facilities in recent weeks, creating severe domestic fuel shortages. Russia, traditionally a major exporter of gasoline and diesel, has begun importing fuel to meet domestic demand. The country has already imported at least 60,000 tons of gasoline from India and plans to increase monthly imports to 400,000 tons from Belarus—equivalent to 12 percent of Russia's monthly gasoline demand.

Meanwhile, Saudi Aramco announced an 11-dollar price reduction for crude oil exports to Asia in August, the largest cut in 26 years. The company eliminated its usual 9.5-dollar premium over Oman and Dubai crude, while adding an additional 1.5-dollar discount. The combined effect reduces crude acquisition costs for Asian refiners at a time when refining margins are widening due to constrained global fuel supply.