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Desperate for Fuel, Russia Looks to Kazakhstan for Refining Capacity
['Julianne Geiger', 'Julianne Geiger Is A Veteran Energy Journalist', 'Market Analyst With More Than A Decade Of Experience Covering The Global Oil', 'Gas Sector. Her', 'More Info']
Oilprice.com
Russia is running short of undamaged oil refinery capacity, and it’s looking to Kazakhstan for help.
Kazakhstan said Thursday that it is in talks with Moscow to process Russian oil at Kazakh refineries, sell some of the resulting fuel domestically, and send a portion back across the border to Russia.
For Kazakhstan, Russian crude would help keep its refineries running at stable rates while adding fuel to the domestic market.
The plan would do little to loosen the global diesel market.
Fuel kept in Kazakhstan or shipped back to Russia is fuel that will not reach buyers elsewhere, where supplies are already tight after refinery outages in Russia and the Middle East.