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On Friday, the International Energy Agency (IEA) announced that Russia‘s oil exports had reached the highest level since April 2020 in physical terms in March 2023 due to an increase in supplies of oil products. According to TASS, a Russian news agency, export revenues rose by USD 1 billion compared with February to USD 12.7 billion.
Increase in Supplies of Oil Products
Russia’s supplies by sea grew by 0.6 million barrels per day to 8.1 mn barrels per day, while deliveries of petroleum products rose by 450,000 barrels per day month-on-month to 3.1 million barrels per day, the agency said. However, Russia’s revenues from oil exports added USD 1 billion in March, but decreased by 43% in annual terms, the IEA noted.
Reduction in Crude Production
The agency also reported that Russia reduced crude production (excluding gas condensate) by 270,000 barrels per day to 9.58 million barrels per day in March, with output 900,000 barrels per day below the plan. That said, Moscow announced a reduction in output by 500,000 barrels per day from the February average starting March, according to TASS.
Embargo on Maritime Russian Oil Shipments
On December 5, 2022, an embargo on maritime Russian oil shipments to the European Union came into force, according to TASS. G7 nations, the EU, and Australia agreed on a price cap for Russian oil delivered by sea, setting the ceiling at USD 60 a barrel. Moreover, starting February 5, 2023, similar restrictions on deliveries of petroleum products from Russia were enforced as the EU Council officially greenlighted the decision, in conjunction with the G7, to introduce a price ceiling on Russian petroleum products supplied by sea at USD 100 for premium oil and at USD 45 for discount, according to TASS.
In conclusion, Russia’s oil exports reached the highest level since April 2020 in physical terms in March 2023 due to an increase in supplies of oil products, while export revenues rose by USD 1 billion compared with February to USD 12.7 billion. However, the country’s revenues from oil exports decreased by 43% in annual terms. The reduction in crude production and the embargo on maritime Russian oil shipments to the European Union may have contributed to the decline in revenues.