Falling crude oil prices and declining oil exports resulted in a $3.2-billion drop in Russia's oil revenues to $15.3 billion for September, the lowest monthly oil export revenue for Moscow this year, the International Energy Agency (IEA) said on Thursday.
Total crude oil and oil product exports out of Russia fell by 230,000 barrels per day (bpd) to 7.5 million bpd in September, the IEA said in its Oil Market Report out today. The September oil export level was 560,000 bpd lower compared to Russia's oil exports before the invasion of Ukraine, the agency estimated.
Russian oil exports to the European Union fell by 390,000 bpd in September compared to August, the IEA's data showed.
"With less than two months to go before a ban on Russian crude oil imports comes into effect, EU countries have yet to diversify more than half of their pre-war import levels away from Russia," the agency noted.
The IEA also warned that the EU embargo on crude oil imports from Russia and the ban on maritime services that go into effect in early December could lead to further production losses from Russia.
Putin, as well as Deputy Prime Minister Alexander Novak, have said that Russia would not export oil to countries joining the proposed price cap on Russian oil.
Despite the lowest oil income for this year in September, Russia's revenues "were still higher than the average monthly revenue in 2021," which stood at $14.9 billion, the IEA said in its monthly report.
As of September, the EU had already imported more than $97 billion (100 billion euros) worth of fossil fuels from Russia since the Russian invasion of Ukraine, the think-tank Centre for Research on Energy and Clean Air (CREA) said in a report earlier this month.
"Russia's fossil fuel exports resumed dropping in September, with estimated revenue falling 14% from August. The largest losses were in gas exports to Europe, and in crude oil exports globally," CREA said.
By Tsvetana Paraskova for Oilprice.com
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Comments
But the remarkable thing about Russia’s oil and petroleum products exports is that despite the harshest ever sanctions and embargoes imposed on a country, Russian oil and products exports fell only to 7.5 million barrels a day (mbd) in September from 8.0 mbd prior to the Ukraine conflict.
The important thing is that Russia’s annualized oil revenues in 2022 are estimated at $301.13 bn based on an average Brent crude price of $110 a barrel compared with $201.48 bn in 2021 based on an average price of $69 or 50% higher.
Dr Mamdouh G Salameh
International Oil Economist
Global Energy Expert