Fuel situation at Moscow airports still tense

Moscow's airports could face a fuel shortage of 30,000-50,000 tonnes in October, an oil industry source told Interfax.

The source said the problems with aircraft fuel supplies that were seen at the end of August persisted. "Demand exceeds supply, and it's difficult to buy kerosene on the exchanges, there's hardly any there," the source said.

The shortage is arising due to an increase in flights, a large defense order and the stoppage of several oil refineries for maintenance.

"Vladivostokavia has some problems, but Transaero and Aeroflot (RTS: AFLT) don't for now. But there'll be a shortage of 30,000-50,000 tonnes in September-October - that's how much the producers will not be in a position to supply," another source said.

Yet another source said Moscow's Domodedovo Airport has asked for an extra 10,000 tonnes of fuel in October.

The airport's press office said TNK-BP (RTS: TNBP) had been unable to confirm deliveries for October, and had not done so in September either, but the oil company told Interfax it had "fulfilled and would fulfill obligations to supply fuel as per signed contracts." The company said it was ramping up kerosene production but that it could not keep up with rising demand for all consumers.

Not one deal was struck for TS-1 kerosene on the St Petersburg International Mercantile Exchange September 22-27, and there was just one deal for 10,000 tonnes on September 28.

The fuel situation at Moscow's airports came under scrutiny at the start of September, when the Russian Federal Air Transport Agency (Rosaviatsia) said it would ask the state reserve to release 80,000 tonnes of fuel and ask the oil companies to restore full supplies and then increase them 10%. Ministries and oil companies said at a September 1 meeting that the shortages had been caused by a sharp reduction in kerosene production and a possible shift in emphasis winter diesel production.

The Transport Ministry drafted a decree for airports to increase fuel reserves from three to ten days but Interfax's sources say the state reserve has not yet released any fuel.

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