Russia scrambles to restore fuel supplies as refineries resume operations

Russia is grappling with a significant fuel crisis, characterized by gasoline and diesel shortages that have persisted since the spring. The situation has been exacerbated by intensified Ukrainian drone attacks targeting Russian refineries, some located over 1,000 miles from the Ukrainian border. The latest attack on Monday night hit the 180,000-barrel-per-day Afipsky refinery in the southern Krasnodar region, causing a fire and damaging at least 10 homes, with drone debris killing two people.

In an effort to alleviate concerns, Russia's Deputy Prime Minister Alexander Novak, who oversees energy matters, announced on Monday that several oil refineries have resumed operations following repairs. Novak expressed optimism that this would lead to an increase in fuel supply. The crisis has led to widespread fuel rationing in various regions, with gas stations in major cities running out of fuel and experiencing long queues.

Concurrently, Russia has seen its diesel and gasoil exports plummet to multi-year lows, prompting Moscow to extend restrictions on diesel exports. The lack of Russian diesel adds to Middle East supply disruptions, tightening the global middle distillate market.