- Bloomberg data indicates that Russian seaborne crude oil exports are at their lowest level in five months.
- Over a period of four weeks, Russia’s seaborne shipping volumes dropped below 3,000,000 barrels per day.
- Exports to Asia declined 18% while imports to Europe dropped 18%.
According to Bloomberg data, Russia has seen a dramatic drop in its seaborne crude exports over the past month. Cargoes going to Europe have fallen 18%.
Exports were hampered by a storm in the Pacific and a drop in Baltic region shipments. Bloomberg data shows that crude oil shipped from Russian ports in the week ending September 16 averaged 2.54 million barrels per day in comparison to 3.42 million barrels in September 2.
A four-week moving average showed that Russia’s seaborne shipment dropped below 3 million barrels per day, for the first time since May.
Europe, specifically, saw shipments fall by 172,000 barrels per hour in the month ending September 16, according to Bloomberg. This is because the European markets are increasingly closed to Russia. New December Sanctions.
However, Russian crude oil cargoes in Asia didn’t surge during the same time frame, so there was no way to offset the decline in other exports.
With lower volumes and a 15% drop of export duty rates, the Kremlin could be unable to fund its war against Ukraine.
Despite this, overall, Russian energy has been in high demand in Asia. China spent a Record-breaking $8.3 BillionCustoms data indicated that there were no Russian energy imports for August. Chinese buyers bought huge amounts of Russian energy last month. They have spent $44 trillion on Russian energy total since February.
Russian Urals oil trades at around $72 a barrel. China has taken advantage. Brent crude oil and West Texas Intermediate crude are both currently priced above $80.
