In the seven days leading up to Dec. 30, Moscow received $108 million in oil export taxes, down $15 million, or 12 percent from a year earlier, according to data compiled by Bloomberg. compared to the previous period.
Crude oil exports dropped in four weeks to 2,650,000. barrels per day, which means a drop of 117 thousand. barrels per day over the previous period.
It happened shortly after The European Union has imposed a partial embargo on Russian oil and introduced price limit of $60. per barrel. The decisions went into effect on 5 December.
Oil exports fell by 54%. in the first full week of sanctions, which is a problem for Russia as oil is one of the country’s main sources of income.
Before the latest sanctions Europe was one of Russia’s largest and most difficult to replace customers. According to Bloomberg, Moscow relies on China, India and Turkey, which are currently the only major recipients of Russian oil.
Russia’s oil price cap has allowed customers to fight for bigger discounts. Traders familiar with the matter said so seven shipments were sold in India below the G7 price top, despite Russia’s announcement suspend business with any country that supports this mechanism.
Oil prices
In recent days, benchmark oil prices have dipped below $80. per barrel on fears that rising Covid cases in China could dampen demand.
However, prices could rise again as Russia has threatened to cut the amount of its oil on the market by 700,000 tonnes in retaliation for the price cap. barrels per day.
Also, due to the EU ban alone, Russian oil production will decline by at least 1 million bpd, which could push the price of Brent oil above $100, according to UBS. per barrel.
Above is a translation of the article from Insider US edition.
Author: Jennifer Sor
Translation: Mateusz Albin
