Russia cut oil exports in August, but its revenues rose to their highest level since October 2022. The International Energy Agency (IEA) published its September report on the oil market.
In the last month of summer, Russian companies reduced exports of raw materials by 150 thousand barrels per day – to 7.2 million barrels. At the same time, the IEA report said rising prices led to the largest revenue gain since October 2022. It amounted to $17.1 billion.
“Russian oil export revenues rose $1.8 billion to $17.1 billion in August as high prices more than offset lower supplies. Excluding the decline in supplies of petroleum products, Russian oil exports fell by 150 thousand barrels per day, to 7.2 million barrels per day, which is 570 thousand barrels per day lower than a year ago. Supply to China and India fell to 3.9 million bpd from 4.7 million bpd in April and May, but accounted for more than half of the total,” the agency said in its report.
Saudi Arabia began to further reduce oil production in July, and Russia in August. This led to an increase in prices for both standard varieties and Russian ones.
The IEA believes that the Russian-Saudi alliance poses a serious problem for oil markets.
“After oil prices traded relatively calm in August, the decision by Saudi Arabia and Russia to extend production cuts of 1.3 million barrels per day until the end of the year sent North Sea prices soaring above $90 a barrel to a 10-month high. “, reports the IEA.
The agency believes that the reduction in production by OPEC+ countries by more than 2.5 million barrels per day was offset by supplies from the USA, Brazil and Iran.
“But OPEC+ production cuts led by Saudi Arabia will lead to a significant supply shortfall in the fourth quarter. An end to the cuts at the start of 2024 would shift the balance towards a surplus. However, oil inventories will remain uncomfortably low, increasing the risk of another surge in volatility that would not be in the interests of either producers or consumers given the fragile economic environment,” the report said.
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2023-09-13 11:10:00
