Russia Continues To Earn More By Exporting Less Oil

Russian export revenues in June rose by $700m to the $20 billion mark, despite that oil exports fell by 250k b/d m/m to 7.4m b/d, the lowest since August 2021, Bloomberg’s Sherry Su reports citing the IEA’s latest Oil Market Report.

Compared to a post-war peak level in April, total Russian oil exports in June were down 530k b/d, Or 7%, but export revenues were up by $2.3 billion, or 13%.

Crude oil exports were down by 250k b/d in June to just above 5m b/d, still slightly higher than the pre-war average level according to Su. Shipments to the EU fell below 3m b/d for the first time since November 2020, bringing the EU share of Russian oil exports to 40%, compared to 49% in January-February.

Crude oil loadings to EU destinations fell 190k b/d m/m to 1.8m b/d, partly because of lower offtake on the Druzhba pipeline due to maintenance at a Hungarian refinery in June. Meanwhile, product loadings to the European Union fell by 135k b/d to 1.13m b/d, the IEA said.

The fall in crude oil volumes came mostly from lower loadings on the Black Sea, as Rosneft’s 240k b/d Tuapse refinery reportedly came back online in June after a three-month shutdown.

Total product exports out of Russia were relatively unchanged in June. Diesel exports increased slightly m/m to 825k b/d, 300k b/d lower than the pre-war average. Diesel Loadings to EU countries ticked up to 650 kb/d, returning to January-February average levels.