Russia’s crude and fuel export revenue slumped by $920 million in August compared to July, the International Energy Agency (IEA) estimates in its latest monthly report.
The discounts of Russian crude grades widened last month amid the U.S. pressure on India for buying oil from Russia, while Russian refinery production slumped as Ukraine hit several processing facilities with drones.
As a result, Russia’s crude and petroleum product export revenues plunged by $920 million from July to $13.51 billion in August, the IEA’s estimates showed.
The revenues were at one of the lowest levels since 2022, when Russia invaded Ukraine.
“Russia’s oil export revenues remain near five-year lows, reducing tax revenues and exacerbating Russia’s economic slowdown,” Reuters quoted the IEA as saying in the report.
Russian crude output fell by 30,000 barrels per day (bpd) to 9.28 million bpd in August, the IEA’s report showed.
Crude and fuel exports fell by more than this figure—by 70,000 bpd to 7.3 million bpd, per the agency’s data. Exports of crude declined by 30,000 bpd and fuel exports fell by 40,000 bpd.
The discount of Russia’s flagship Urals crude blend for Indian buyers has widened to between $3 and $4 per barrel amid continued pressure from the United States on India to force it to stop buying Russian crude. India continues to buy Russian crude, but at wider discounts compared to minimal discounts in June and July.
Moreover, Russia’s Urals crude grade, which usually goes from the western Russian ports to India, was being offered at discounts in China last month amid uncertainties over Indian purchases of Moscow’s oil following the additional tariffs the U.S. slapped on India. Prompt Urals cargoes have been pitched to Chinese buyers, who typically import the Far Eastern Russian grade ESPO.
Due to crippled domestic operating refining capacity, Russia is expected to sharply increase crude oil exports in the coming weeks.
By Tsvetana Paraskova for Oilprice.com
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