Russia's oil export income drops to 4-month minimum
The income from Russian oil exports decreased in June. The drop occurred amid a decrease in the export of oil and oil products.
Source: Bloomberg
Details: Russia’s income from oil export has dropped to its lowest level since February amid slightly lower shipment volumes.
In June Russia earned US$16.7 billion from oil exports, which is 1.2% less than the month before. However, the country’s revenue from oil export jumped nearly 23% compared with last year.
Reportedly, the monthly revenue decrease from 7.7 million barrels a day in May to 7.6 million barrels a day in June occurred due to the decline in the export of Russian crude oil and petroleum products.
The average weighted price of the nation’s crude in June rose to US$70.39 per barrel compared to US$70.05 in May, yet the slightly higher prices did not offset lower export flows.
On average Russian barrels continued to trade well above the US$60 price cap imposed by the G7 industrialised countries in response to the Kremlin’s invasion of Ukraine.
In June, the oil taxes brought in around $6.7 billion for the Russian budget, almost 50% more than a year ago, according to the Russian Finance Ministry’s data. Compared to May, revenues declined 6.6% due to a lower pricing of Urals, Russia’s key export blend.
Background:
- At least a dozen of Russian business owners received over 1 trillion roubles (about US$11.3 billion) in 2023 and in the first quarter of 2024 in the form of dividends.
- Chinese buyers of liquefied gas demand price reductions on Russian cargo even from companies which were not added to sanctions lists.
- Oil prices increased on 11 July since the stocks of raw oil dropped and petroleum stocks decreased which is a sign of an increased demand.
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