Russia Oil Revenue Up 50% This Year Despite Boycott, IEA Says

(Bloomberg) — Russia’s oil revenues are up 50% this yr whilst commerce restrictions following the invasion of Ukraine spurred many refiners to shun its provides, the Worldwide Power Company mentioned.

Moscow earned roughly $20 billion every month in 2022 from mixed gross sales of and merchandise amounting to about 8 million barrels a day, the Paris-based IEA mentioned in its month-to-month market report. 

Russian shipments have continued to move even because the European Union edges in the direction of an import ban, and worldwide oil majors equivalent to Shell (LON:) Plc and TotalEnergies SE pledge to stop purchases. Asia has remained a eager buyer, with China and India selecting up cargoes now not needed in Europe.

READ: Russian Crude Retains Flowing Whereas Europe Wrangles Over Sanctions

The IEA, which advises main economies, saved its outlook for world markets largely unchanged within the report. International gas markets are tight and should face additional pressure within the months forward as Chinese language demand rebounds following a spate of latest Covid lockdowns, it mentioned. 

Lowered flows of Russian refined merchandise equivalent to diesel, gas oil and naphtha have aggravated tightness in international markets, the company famous. Stockpiles have declined for seven consecutive quarters, with reserves of so-called center distillates at their lowest since 2008.

However for all of the disruption, Moscow has continued to get pleasure from a monetary windfall in contrast with the primary 4 months of 2021. Regardless of the EU’s public censure of the Kremlin’s aggression, complete oil export revenues had been up 50% this yr. 

The bloc remained the most important marketplace for Russian exports in April, taking 43% of the nation’s exports, the IEA mentioned.

Nonetheless, there are indicators of Russia’s resilience beginning to fray.

Provides had been down 1 million barrels a day final month, and these losses may triple within the second half of the yr, the company estimates. EU sanctions in opposition to Russian state-linked enterprises equivalent to manufacturing big Rosneft PJSC will take impact on Could 15, and the bloc is shifting in the direction of a full ban on the nation’s provides. 

“If agreed, the brand new embargoes would speed up the reorientation of commerce flows that’s already underway and can power Russian oil firms to close in additional wells,” the IEA mentioned.

©2022 Bloomberg L.P.