Russia is struggling to repair its refineries amid US sanctions + US trade deficit inches up in February

Russia is struggling to repair its refineries amid US sanctions, as engineers face challenges sourcing US-made parts damaged in a string of Ukrainian drone strikes, sources close to Russian oil giant Lukoil told Reuters on Thursday. A broken turbine at Lukoil-owned Norsi refinery, Russia’s fourth largest, saw the facility’s output cut by some 40%, with a US-based company standing as the only one capable of making the repairs, sources said. Ukrainian attacks have hit at least a dozen refineries in Russia so far this year, shutting down 14% of Russia’s refining capacity in this year’s first quarter, according to Reuters’ calculations. Meanwhile US-based Honeywell, a key supplier of spare parts, is working hard to disrupt parts getting to Russia via third parties, as the company looks to maintain compliance with sanctions, the newswire said citing a company email.

The US trade deficit inched up 1.9% y-o-y to USD 68.9 bn in February, a near-yearly peak, Bloomberg reported on Thursday, citing Commerce Department data. Imports increased to USD 332 bn, driven by gains in capital goods such as mobile phones, foods, and motor vehicles, the outlet said. Exports reached USD 263 bn, boosted by a rise in shipments of civilian aircraft and crude oil. Adjusted for inflation, the trade deficit reached USD 87 bn in February, the largest since July.

OTHER STORIES WORTH KNOWING THIS MORNING-

• Boeing compensated Alaska Airlines some USD 160 mn in 1Q 2024, to make up for the impact of the temporary suspension of the carrier’s 737 MAX 9 fleet. The payments made up for losses seen in the quarter, with further compensation expected. (Reuters)
• Maersk welcomes its newest LNG large methanol-enabled container ship: AP Moller Maersk has unveiled the Astrid Maersk, the second of 18 large methanol-enabled vessels slated for delivery between 2024-2025. The company deployed the Laura Maersk in September and the Ane Maersk in January, which are among 25 vessels to be fitted with dual-fuel engines that can run on green methanol. (Statement)