Export of Russian oil is declining
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At the same time, Russia still continues to earn $159 million a week from oil exports.
Russian oil deliveries to India and China fell nearly 20% after Saudi Arabia and Iran announced discounts to compete with cheap Russian grades. This follows from the statistics of tanker traffic, which is given by Bloomberg.
Thus, for the week ending July 8, they amounted to 1.76 million barrels per day, although from mid-April to June they exceeded 2-2.1 million barrels.
In general, last week Russia managed to export abroad by sea 3.11 million barrels per day. The four-week average of exports from all Russian ports fell to the lowest level since April, thanks to lower demand from India and China, two countries that have ramped up purchases since the start of the war.
The export of Russian oil to China fell by 25% compared to the beginning of June – from 1.18 to 0.89 million barrels per day; to India – by 27%, from 840 to 610 thousand barrels per day.
Discounts of tens of dollars per barrel offered by Russian oil companies to sell the Urals grade that had become toxic triggered a response from Middle Eastern producers. Saudi Arabia cut prices for high and medium sulfur oil Arab Heavy and Arab Medium to the lowest levels since 2014 against the Oman/Dubai regional benchmark. Iran, which had previously sold sanctioned barrels at a double-digit discount, was forced to increase it by $5-6 compared to Brent.
Now Iranian oil, according to traders, is close in price to the Urals grade in deliveries, which should arrive in China in August. As a result, Russian deliveries to Asia have been declining for the fourth week in a row.
The situation for Russian oilmen is complicated by the fact that at the same time oil exports to the Mediterranean are falling, where, after the imposition of an embrago from the EU, Italy began to refuse Russian oil, which bought 500,000 barrels per day in early June. Now it has reduced imports to 330,000.
Although the flow of physical oil has decreased, this does not affect the Russian budget revenues: the increase in the export duty, which came into force in June, has so far protected the government from the collapse of the commodity rent. The Treasury earns $159 million a week from oil exports.
Previously it was reported that oil production on Sakhalin fell due to sanctions ten times.
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