Russia’s oil exports rose in March 2023 to their highest level since April 2020, but revenue was down by nearly half compared with a year earlier, the International Energy Agency (IEA) said on April 14, 2023.
Volumes up, revenue down
Russia’s total oil shipments rose by 600,000 barrels per day to 8.1 million b/d in March, according to the IEA’s monthly report, as summarised by Oil & Gas Journal. Product exports rose by 450,000 b/d to 3.1 million b/d, returning to levels last seen before the invasion of Ukraine, while crude exports increased by 100,000 b/d to 5 million b/d.
Export revenue rose by $1 billion from February to an estimated $12.7 billion, but was 43% lower than a year earlier.
Sanctions working “as designed”
Bloomberg said the figures suggested sanctions on Russia were working as intended, keeping Russian oil flowing to world markets while cutting Moscow’s income. The EU has banned seaborne imports of Russian crude and refined products, and the G7 has imposed price caps on Russian oil sales.
New buyers
India overtook China as the largest buyer of Russian crude, taking about 2.1 million b/d compared with China’s 1.7 million b/d. Turkey’s imports of Russian diesel and gasoil reached about 370,000 b/d, the highest since at least 2018. Flows to the EU fell, including via the Druzhba pipeline.
Higher prices ahead
The picture could become more complicated as production cuts announced by OPEC+ producers, including Russia, push oil prices higher, raising the value of Russia’s exports.
Sources
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