Russia's Oil Revenues Reach Highest Level Since 2022 - Bloomberg

According to Bloomberg's latest report, Russia's oil export revenues have surged to their highest point since 2022. This increase has been fueled by a rise in global oil prices, which has been exacerbated by the ongoing conflict in the Middle East, leading to heightened demand for Russian oil. Following Iran's effective closure of the Strait of Hormuz to shipping, over 12 million barrels of oil per day that are typically exported from the Middle East have become stranded in the Persian Gulf. This situation has allowed the Kremlin to sell off oil reserves that were previously stored on tankers at sea, as refineries rushed to find alternative sources of supply.

According to vessel tracking systems, in the week leading up to April 5, 28 tankers loaded a total of 20.88 million barrels of Russian oil and departed from ports in Russia. Notably, shipments from the Ust-Luga port on the Baltic Sea were halted due to drone attacks. However, offloading from Primorsk, which had been interrupted by several drone strikes, has resumed, as have operations at the Pacific port of Kozmino after a four-day hiatus.

Moreover, there has been a rapid decline in Russian oil stocks at sea. In the two weeks leading up to April 5, stocks decreased to 105 million barrels, down from a peak of approximately 140 million barrels in mid-January. Indian refineries have actively purchased Russian oil that was previously stranded in the Arabian Sea. Shipments to India last month rebounded to 1.9 million barrels per day, marking the highest level since June, after the United States issued permits for the purchase of Russian oil loaded onto tankers by March 12. Meanwhile, shipments to China have decreased to similar levels compared to record highs of 2.1 million barrels per day in February.

The price of Russian Urals crude oil has been rising for the fifth consecutive week. This increase is attributed not only to the conflict in the Middle East but also to a further reduction in the discounts that Moscow was previously compelled to offer China to sell its oil. Export prices for Urals from the Baltic Sea have risen by approximately $12.50, reaching $85.73 per barrel. A similar increase has been observed in prices for cargoes from the Black Sea, which have climbed to $84.07 per barrel. The price of ESPO crude from the Pacific region has increased to an average of $92.11 per barrel, while prices for deliveries to India have risen to $113.76 per barrel. All prices are reported according to Argus Media.

However, despite the rising prices, the Kremlin is unable to fully capitalize on these gains due to drone attacks on export ports along the Baltic and Black Sea coasts. The news agency also notes that the two-week ceasefire announced on Tuesday in the Iranian conflict has led to a decrease in oil prices. This could significantly reduce Moscow's revenues if the ceasefire persists and oil can once again flow through the Strait of Hormuz.

It is worth recalling that oil prices fell below $100 per barrel following U.S. President Donald Trump's announcement of a two-week ceasefire with Iran, contingent upon the immediate and safe reopening of the Strait of Hormuz.

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