• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 18 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 3 hours Is Europe heading for winter of discontent with extensive gas shortages?
  • 14 hours "False Flag Planted In Nord Stream Pipeline, GFANZ, Gore, Carney, Net Zero, U.S. Banks, Fake Meat, and more" - NEWS in 28 minutes
  • 14 hours Wind droughts
  • 2 days ""Green" Energy Is a Scam. It Isn't MEANT to Work." - By James Corbett of The Corbett Report
  • 8 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 13 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 3 days Xi Is Set To Be Re-Elected As China’s Leader
  • 37 mins Australian power prices go insane
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 15 hours Europeans and Americans are beginning to see the results of depending on renewables.
  • 12 days Oil Prices Fall After Fed Raises Rates
American Energy Bills Are Set To Soar This Winter

American Energy Bills Are Set To Soar This Winter

As the global energy supply…

Were Traders Too Quick To Dump Oil?

Were Traders Too Quick To Dump Oil?

Warnings of a worldwide recession…

Russia’s Oil Export Earnings Set To Decline On Heavily Discounted Urals

While Moscow said earlier this week it was anticipating a more than $6-billion boost in oil revenues in June, despite sanctions, a new report from Bloomberg shows that while Russian seaborne crude oil shipments have increased, Moscow is earning far less on exports. 

In the seven days to June 3rd, Russian crude oil shipments by sea hit their highest rate in six weeks, according to Bloomberg. However, those cargoes are being sold to Asian buyers at heavy discounts. 

Russia is still raking in oil revenues, but it’s selling more, for less.

For the seven days to June 3rd, Bloomberg cites tanker data as showing a 10% increase from the week ended May 27th. India continues to lead the buying spree, taking in 660,000 bpd of discounted Russian crude in May for a nearly 2.5-fold increase over the previous month. 

As of a week ago, Russian oil was selling at a 30% discount to the global benchmark, according to Bloomberg. The spread between cheapers Urals crude and the Brent crude is now more than $5 per barrel, making Urals grade nearly $3 cheaper than at the start of the year. 

Once the European Union’s sixth sanctions package is fully implemented, we could see a further diversion of Russian exports at heavily discounted prices, and a potential drop in revenues. The EU ban on Russian oil imports goes into force in the first week of December and only targets seaborne imports, not pipeline imports. However, two countries–Germany and Poland–have vowed to stop taking in piped Russian crude, as well. If they make good on their pledge, Europe should reduce Russian oil imports by around 90%, according to Bloomberg, citing data from Russia’s Transneft pipeline operator. 

Last week, Fitch projected that Russia could see between 2 million bpd and 3 million bpd of its oil exports—or about a quarter of the country’s oil production—disappear from the global market by end-2022.

By Charles Kennedy for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News