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Russian gasoline prices plunge on bearish cocktail

London (Platts)--21 Dec 2017 855 am EST/1355 GMT


Prices of gasoline on the Russian domestic market plunged Wednesday on weak demand and ample supply.

This was due to high production levels, insufficient demand and regulatory pressure, sources said.

S&P Global Platts assessed 95 RON gasoline in the Privolzhsky Federal District at Rb39,650/mt ($676/mt) Wednesday, down 3.29% on the day and its lowest point since March 17. Platts assessed 95 RON gasoline in the Central Federal District at Rb41,600/mt, its lowest point since March 16.

"There are big volumes available and not enough demand," a market source said.

"There is also the psychological element, with dissatisfaction from [the Federal Antimonopoly Service]."

The FAS is keen to subdue retail prices with the presidential election in the spring, sources said.

Producers appear to be responding to the good availability. Gasoline production in the the December 13-19 week was 769,000 mt, a 0.1% decrease week on week, data from the Central Dispatching Unit, the Russian Energy Ministry's statistical arm, showed.

Deliveries to the domestic market edged down 0.8% week on week to 673,000 mt, the data showed.

--Tom Washington, Thomas.washington@spglobal.com

--Edited by Jonathan Fox, jonathan.fox@spglobal.com




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