Russian oil export revenues plummet as prices and volumes dive

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

The International Energy Agency (IEA) reported that in August, the average export price of Russian oil decreased by roughly $4.92 CAD to $69.82 CAD. Oil and oil products exports from Russia fell by 290,000 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 the previous year. Exports of oil products also decreased by 20 thousand barrels per day, and supplies of light products fell by 240 thousand barrels per day. However, the supply of heating and vacuum gasoil increased by 230 thousand barrels per day - it reads.

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

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. About 230 thousand barrels exported by sea had no specified destination at the time of the report's publication, the portal reports.

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