Russia's gasoline production has dropped to 70% of domestic demand after drone attacks on refineries, according to sources cited by Reuters. The shortfall adds to existing export bans and fuel rationing, and some market participants see it raising the odds of crude oil reaching new highs.
Russian refineries are now producing gasoline well below what the country needs. According to sources cited by Reuters, output has fallen to 70% of domestic demand following drone strikes on refining facilities.
Daily output is averaging 80,000 tons against summer demand of 115,000 tons, a shortfall of about 35,000 tons a day. That gap comes on top of gasoline export bans and fuel rationing measures Russia already had in place, tightening domestic supply further.
This disruption contributes to an already tight fuel supply situation, and it could feed into broader oil-market tightness as it lines up with existing geopolitical tensions and production cuts from major producers. Statements or actions from OPEC and the International Energy Agency could also shift how markets read the shortfall.
Market pricing suggests some participants view the shortfall as raising the chance of crude oil prices reaching new highs.
Source: Crypto Briefing
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