Russian oil exports hit post-invasion high, but revenues fall 27% – IEA
In April, Russia exported more oil than in any month since it launched a full-scale invasion of Ukraine in February 2022, with China and India accounting for almost 80 percent of crude oil supplies.
This is stated in the report of the International Energy Agency (IEA), writes the Financial Times.
In April, Russian oil exports rose by another 50,000 bpd to a post-invasion peak of 8.3 million bpd, well above the 2022 average of 7.7 million bpd and 7.5 million bpd. and 2021, respectively.
“The rise in supplies reflects Moscow’s success in finding both new buyers for its oil, as Europe blocked imports, and new ships after restricting its access to western sea lanes.
Since the West first threatened Russia with sanctions last year, Moscow has been working with a growing number of little-known trading companies and tanker owners to develop new systems to transport its oil.
“Russia does not seem to have much trouble finding willing buyers for its oil and petroleum products,” the IEA said in a monthly report published on Tuesday.
The EU is currently discussing the 11th package of sanctions against Russia since its invasion of Ukraine last year. The EU alone imposed sanctions against 1,473 Russian individuals and 207 legal entities, and also froze 21.5 billion euros of Russian assets.
However, these measures were designed to allow Russian oil to continue to flow to countries outside the EU. The result has been one of the largest changes in commodity flows in history, with Russia diverting millions of barrels of oil per day from Europe to Asia over the past 12 months.
Although Russia shipped more oil than in April 2022, the IEA estimated that monthly oil export earnings were 27 percent lower than last year, partly due to lower global energy prices.
Russian oil is also trading at a discount to world prices due to the G7’s restrictions on permitted Russian exports of oil and petroleum products, which were introduced in December and February, respectively.
We will remind:
The supply of Russian oil to international markets continues to grow, despite the fact that the country insists on reducing production – the volume of oil shipments by tankers has increased by 10% since the beginning of April.