Russian oil exports have again decreased over the last week, negatively impacting the potential profits from rising global prices.
Decrease in Export Volumes
Russia has reduced its average monthly oil exports to 3.19 million barrels per day, down 4% from the previous four weeks. Weekly averages fell by 220,000 barrels per day, the lowest since mid-April. This decline was attributed to a pause in loadings at the Kozmino port due to maintenance, along with reduced shipments from the Baltic port of Primorsk, which lacked a public explanation.
Rising Oil Prices
Despite the drop in export volumes, Russia earned $1.38 billion from oil sales in the past week, an increase of $40 million from the previous week. This rise was driven by a sharp increase in prices: the average price for Urals oil jumped nearly $7 per barrel amid heightened tensions between Iran and Israel, which caused prices to surge earlier in the week.
Future Prospects
Domestic refineries in Russia are ramping up production, putting further pressure on export volumes. From June 1 to June 18, average processing rates stood at 5.42 million barrels per day. As a result, export deliveries continue to shrink, which may lead to a further decline in revenues from foreign sales.
Consequently, despite the temporary spike in oil prices, the decrease in export volumes and internal refinery demand negatively impact overall revenues from oil sales.
