The four-week average of Russia’s seaborne oil exports fell to its lowest level in three months. In November, slightly more than 3.04 million barrels of oil per day were shipped from Russian ports. This is 125,000 barrels per day less than the revised figure for the period up to November 26. The news agency reports this Bloomberg.
The rate of weekly deliveries has dropped sharply, journalists note.
By that measure, supplies fell to 2.74 million barrels per day, down about 500,000 barrels per day from the revised figure for the period through November 26. Weekly deliveries were the lowest in 15 weeks.
Moreover, oil refining in Russia in the last week of November showed the deepest weekly decline since the end of August amid lower refining rates at several refineries. One of the most affected was the Rosneft Tuapse oil refinery on the Black Sea coast. The plant, which ships the bulk of petroleum products abroad, reduced processing volumes amid the shutdown of the region’s ports last week due to storms. The Kremlin’s weekly revenues from oil export duties fell due to lower supply volumes and a reduction in the duty rate on December supplies.
A decrease in Russian oil exports could have a number of consequences. It could lead to a decline in Russia’s oil revenues, which are the main source of income for the Kremlin.
The long-term impact of this decline is uncertain as it will depend on a number of factors, including how quickly Russia can resume normal export levels and the overall health of the global oil market. However, a recession is a significant event that can have a knock-on effect.
Let us recall that in November it was reported that three Greek shipping companies refused to transport oil from the Russian Federation after Western allies strengthened control over compliance with the price ceiling.
Author: Mark Voroshilov
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