Russia's oil revenues in August rise to maximum since fall of 2022

In August, Russia received the maximum income from oil exports since the fall of 2022 due to higher oil prices offsetting supply cuts, the International Energy Agency (IEA) said in a report.

Last month, revenues from the supply of Russian oil rose by almost $2 billion to $17.1 billion. This is the highest level since October 2022, when Russian exports reached $17.3 billion, according to the IEA.

The total volume of Russian oil exports in August decreased by 150,000 barrels per day to 7.2 million. This is 570,000 b/d less than a year ago.

Supplies to China and India fell by 800,000 barrels per day compared to April and May, from 4.7 million to 3.9 million in August, but at the same time accounted for more than half of the total volume.

Russian Urals oil traded at an average price of about $70 per barrel in August, which is $10 higher than the price ceiling set by the G7 countries and the European Union, according to the agency. In the first week of September, the average price of Urals rose to $75 per barrel.

The price of Russian oil increased due to a fall in its exports compared to May. This caused tension in world markets. Rising Urals prices have prompted refiners in India to look for alternatives, and they have increased supplies from the Middle East, IEA said.

The price of Brent oil in August was about $85 per barrel, and the price fluctuation was minimal for several years. In early September, the price of Brent exceeded $90 for the first time in 10 months, following the decision by Saudi Arabia and Russia to extend voluntary reductions in oil production and exports until the end of 2023.

In August 2023, China increased its purchase of oil from Iran to a record level as it is cheaper than Russian oil.

On August 22, Bloomberg wrote that the price cap on Russian oil is no longer working.

On September 6, the G7 postponed the review of price restrictions on Russian oil.