Russian oil exports fall to lowest level since March 2021

Oil imports from Russia dropped to a two-year low in June, and Russia's revenue from oil sales is almost half of what it was a year ago, states the July report of the International Energy Agency (IEA).

Russian oil exports fell by 600,000 barrels per day in June to 7.3 million barrels per day, the lowest since March 2021. Estimated export turnover fell by $1.5 billion to $11.8 billion, which is almost half of what it was a year ago.

Since August, Russia has promised to cut exports by another 500,000 barrels a day to stem falling prices and revenues. But it may maintain production at the previous level, as domestic demand for oil rises seasonally, the agency said.

Oil supply rose by 480,000 barrels per day in June to 101.8 million, but will soon fall due to lower output by Saudi Arabia.

According to the IEA forecast, world demand this year will increase by 2.2 million barrels per day to 102.1 million barrels per day, with China providing 70% of this growth.

At the beginning of 2023, Russia became the largest supplier of crude oil to China.

In June, India increased its oil imports from Russia to a record 2.2 million barrels per day.

In July, the discount on Russian oil for India decreased by 87% — and may disappear altogether.

On July 12, the price of Russian Urals oil for the first time exceeded the threshold of $60 per barrel, which was set by the G7 countries, the EU and Australia as part of the sanctions.