Russia’s oil exports last month rose to the highest level since its invasion of Ukraine, boosting revenues US$1.7 billion despite Western sanctions, the International Energy Agency (IEA) said yesterday.
The Paris-based organization said that Russian exports increased by 50,000 barrels per day to 8.3 million barrels per day last month, estimating that the country did not fully deliver on a threat to cut production sharply.
“Indeed, Russia may be boosting volumes to make up for lost revenue,” the IEA said in its monthly oil market report.
Photo: Reuters
The country’s oil export revenues rose US$1.7 billion to US$15 billion last month.
However, that figure was 27 percent lower than the same month last year.
Russia’s tax receipts from its oil and gas sector were down by 64 percent year-on-year, the agency added.
G7 nations and Australia have set price caps on Russian petroleum products and crude in coordination with the EU in an effort to cut a key source of funding for its war on Ukraine.
The EU has also imposed embargoes on the country’s key oil exports.
In response, Russia has threatened to cut off countries and companies that comply with the price cap. It has also announced a production cut of 500,000 barrels per day while its allies in the OPEC+ group of oil producers, including Saudi Arabia, also agreed to slash output.
The IEA said that Russia’s crude output held “broadly steady” at 9.6 million barrels per day last month and that the country must cut a further 300,000 barrels per day this month to bring itself into line.
“Russia seems to have few problems finding willing buyers for its crude and oil products, frequently at the expense of fellow OPEC+ members in the two-tier market that has emerged since the embargoes came into force,” the IEA said.
The agency said that China and India accounted for nearly 80 percent of Russian crude export destinations.
China’s emergence from nearly three years of COVID-19 restrictions is also expected to lift world oil demand this year as the IEA raised its forecast by 2.2 million barrels per day to an average of 102 million barrels per day.
This is 200,000 barrels per day above the previous forecast.
“China’s demand recovery continues to surpass expectations, with the country setting an all-time record in March” at 16 million barrels per day.
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