Russia is earning more from oil exports than at any time since the first weeks of the war in Ukraine, as soaring prices and increased supply volumes have pushed the value of supplies to their highest level since June 2022, UNN reports with reference to Bloomberg.
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The war in the Middle East has driven global oil prices to multi-year highs and intensified demand for Moscow's oil after Tehran effectively closed the Strait of Hormuz to shipping. This has delayed over 12 million barrels per day of Middle Eastern oil exports in the Persian Gulf and contributed to the depletion of Russian stockpiles held at sea as refineries scramble to find alternative sources of supply.
Nevertheless, the Kremlin's own reserve fund is not fully benefiting from the price increase due to the impact of Ukrainian drone strikes on export ports on the Baltic and Black Sea coasts. And the two-week truce in the Iranian conflict announced on Tuesday evening caused oil prices to fall. This could reduce Moscow's revenues if the truce holds and oil can once again flow through the Strait of Hormuz.
Crude oil shipments from Ust-Luga on the Baltic Sea remain suspended for more than a week after drones hit tanks in the port, despite operations resuming in nearby Primorsk. Another attack on Ust-Luga on Monday evening occurred just as oil loading operations resumed and could prolong the downtime.
Weekly crude oil supplies from Russia have only recovered by about a third compared to the previous period and remained below 3 million barrels per day for the second consecutive week in the seven days to April 5. Four-week average supply volumes were virtually unchanged, increasing by only 20,000 barrels per day to an average of 3.35 million.
Russia increased crude oil sales to fund its war - Zelenskyy22.03.26, 17:50
The recent decline in crude oil supplies coincided with a sharp increase in supplies from tankers previously stuck at sea with Russian cargoes. As a result, Russian oil inventories at sea are rapidly depleting: the volume of oil on tankers decreased by approximately 26 million barrels in the two weeks to April 5. By Sunday, the volume of oil on water had fallen to 105 million barrels, from a peak of about 140 million in mid-January.
Indian refineries bought Russian oil that was previously stuck in the Arabian Sea. Supplies to the South Asian country rose to 1.9 million barrels per day last month, the highest since June, after the US issued permits to purchase Russian oil loaded on tankers before March 12. Meanwhile, supplies to China fell to a similar level, from a record 2.1 million barrels per day in February.
Russia earns an additional $150 million per day from oil – FT13.03.26, 01:01