Russia Has Increased Oil Exports to Record Levels Amid Attacks on Its Refineries — Bloomberg
The Russian Federation has increased its crude oil exports to their highest level since the beginning of this year in an effort to compensate for the loss of domestic refining capacity.
According to analysts, Moscow has been forced to redirect significant volumes of unprocessed crude to foreign markets, leading to a buildup of fuel at sea.
However, with the return of Middle Eastern competitors to the market and the drop in global oil prices, the Kremlin’s oil revenues are rapidly declining.
The increase in exports was recorded by international maritime tracking systems that monitor the movement of the tanker fleet.
According to tanker traffic data, the average weekly volume of Russian oil shipments for the four weeks leading up to June 21 was 3.89 million barrels per day, slightly exceeding the previous week’s figure.
Virtually all of this massive volume of energy resources is currently on ships in transit, rather than sitting idle in ports.
The main catalyst for the shift in Russia’s logistics flows has been the Ukrainian Defense Forces’ successful campaign to strike enemy fuel infrastructure.
“The rise in exports is occurring against the backdrop of Ukrainian strikes on Russian oil refineries, which is potentially forcing Moscow to divert additional volumes of oil—which cannot be processed domestically—to foreign markets,” Bloomberg experts note.
As a result, the volume of Russian oil at sea has risen to 125 million barrels, which is about 26% more than the low recorded in mid-April.
Despite record physical shipments, Russian exporters are finding it increasingly difficult to maintain their positions in the global market due to geopolitical shifts.
Following the reaching of temporary agreements between Washington and Tehran and the effective resumption of shipping through the Strait of Hormuz, additional volumes of oil from Iran and other Middle Eastern countries are returning to the market.
In addition, the U.S. Department of the Treasury has temporarily lifted sanctions on the sale of Iranian oil until August 21, and some of these supplies, which are already flooding the market, may become an alternative to Russian Urals crude.
While the Strait of Hormuz remained closed, Russia was able to take advantage of the situation and secure a ready market for its oil.
An additional advantage was the temporary easing of U.S. sanctions on Russian oil, which allowed Indian refiners to increase their purchases.
However, these exemptions expired on June 17; if they are not renewed, Indian companies may switch to other suppliers, depriving Moscow of a key source of foreign currency.
This was reported by Bloomberg.
Oil Prices Fall After Iran and Israel Cease Attacks — Reuters
High oil prices won’t save the Russian economy
