Russian oil exports hit the lowest level since March 2021 as prices fall

The average export price of Russian oil in August fell to $69.82, and exports decreased to 7 million barrels per day, reaching the lowest level since March 2021. Export revenues fell by $1.6 billion, and oil production declined by 80 thousand barrels daily, kommersant.ru reports.

The International Energy Agency (IEA) reported that the average export price of Russian oil decreased by $4.92 to $69.82 in August. Oil and oil products exports from Russia dropped by 290 thousand barrels per day, reaching 7 million barrels, the lowest figure since March 2021.

In July, oil exports fell by 270 thousand barrels per day to 4.4 million, similar to August of the previous year. Oil product exports also decreased by 20,000 barrels per day, and supplies of light products fell by 240 thousand barrels per day. However, the report states that the supply of heating oil and vacuum gasoil increased by 230 thousand barrels per day.

Export revenues fell by $1.6 billion compared to July, reaching $15.3 billion. Revenues from oil products decreased by $480 million, amounting to $5.6 billion, while revenues from oil decreased by $1.2 billion, reaching $9.6 billion.

The IEA points out that it is unclear whether the deep decline in exports is due to the implementation of OPEC+ production reduction commitments or more intensive field maintenance. Oil production in Russia fell by 80 thousand barrels per day, reaching 9.11 million. The portal reports that about 230 thousand barrels exported by sea had no specified destination at the time of the report's publication.

The price of Urals oil fell by $3.5-4 per barrel, reaching $68.3, while the North Sea date fell by $4.54 to $80.7. The discount of Urals DAP West Coast India to Dubai decreased from $1.8 to $0.7 per barrel.