Russia's oil exports down to 5-month low due to drone attacks: profits fall

April exports of oil and oil products from Russia fell to levels last seen in late 2023. This is due to attacks by Ukrainian drones and a planned production cut, which puts pressure on the country's oil revenues.

Source: Bloomberg with reference to data from the International Energy Agency 

Details: The agency's monthly report says Russia exported 7.3 million barrels per day last month, down 6.4% from March. The IEA noted that this is the lowest level of oil exports from Russia in the last five months.

The bulk of the decline came from product flows, which fell by almost 15% to 2.3 million barrels per day, compared to March, the figures show.

Higher prices for Russian oil and fuel partially offset the impact of lower exports on the country's revenues. Still, the agency estimates that the country earned US$17.2 billion from oil exports in April, down from US$18.4 billion a month earlier.

Background:

• The Russian budget's energy revenues for the first four months of 2024 totalled 4.157 trillion roubles (about US$45.5 billion), up 82% compared to the same period in 2023. 
• The Russian energy giant Gazprom has suffered record losses over the past 25 years, but the Kremlin is going to further tax one of the largest state-owned companies.
• The Russian Energy Ministry proposed that the government ban on petrol exports, which had been in place since March 2024 –after a series of attacks on Russian refineries – be temporarily lifted.
  
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