Ukrainian strikes on Russian oil refineries, combined with Western sanctions, have benefited Russia’s oil industry competitors. The profits of the four largest Western oil companies from refining operations jumped 61% in Q3 compared to the previous quarter, contributing significantly to an overall 20% increase in total profits, Reuters reports.
Uninterrupted drone attacks on Russian refineries and export terminals since July caused daily oil product exports to drop by 500,000 barrels in September from this year’s peak levels. As a result, Russia shipped only 2 million barrels per day abroad by tanker — the lowest level not only since the start of the war but also since the onset of the COVID-19 pandemic in 2020.
This has driven up refining margins for U.S. Exxon Mobil and Chevron, U.K.-based Shell, and France’s TotalEnergies, which together account for over 10% of global oil product output, or 11 million barrels per day. For example, Exxon Mobil’s Energy Products segment saw profits rise more than 30% quarter-on-quarter to $1.84 billion, as the company reported on Friday, due to “supply disruptions” of such products in the global market.
The situation is similar for Britain’s BP, which will report its quarterly earnings on Tuesday. The company, which previously held nearly 20% of Rosneft shares but exited its stake after the start of the war in Ukraine, is now effectively earning additional profits thanks to sanctions. BP’s refining margin rose 33% compared to Q2 and remains at a high level at the beginning of the current quarter.