Russia’s oil exports reached their lowest level since March 2021
Profit falls to $1.5 billion as Russia’s oil exports decline to their lowest level since March 2021, according to the monthly oil report of the International Energy Agency (IEA).
NEW DELHI: According to the International Energy Agency’s (IEA) monthly crude report, Russia’s oil exports have reached their lowest level since March 2021.In June, the country’s oil exports decreased by 600 thousand barrels per day (kb/d) to 7.3 million barrels per day (mb/d), and its estimated export revenues plummeted by $1.5 billion to $11.8 billion, which is half the levels from a year ago.
According to the report, Russia may hold off on its proposed oil output reduction in August due to rising seasonal domestic demand. As Western nations imposed sanctions on Russian petroleum exports after the outbreak of the Ukraine conflict, Russia diversified its supply.
The nation discounted its exports to alternative markets, including Africa, India, China, and Turkey. India and China emerged as the largest purchasers of Russian petroleum. The International Energy Agency has also reduced its oil demand growth forecast for 2023 for the first time this year, citing macroeconomic headwinds and a worsening manufacturing downturn.
“However, persistent macroeconomic headwinds, apparent in a deepening manufacturing slump, have led us to revise our 2023 growth estimate lower for the first time this year, by 220 ( kb/d). Buoyed by surging petrochemical use, China will account for 70% of global gains, while OECD (Organisation for Economic Co-operation and Development) consumption remains anaemic. Growth will slow to 1.1 mb/d in 2024,” reads the report.
The International Energy Agency report also noted that world oil demand is coming under pressure from the challenging economic environment, not least because of the dramatic tightening of monetary policy in many advanced and developing countries in the past one year.
According to the International Energy Agency (IEA) world oil supply rose 480 kb/d to 101.8 mb/d in June 2023. However, it is set to decline sharply this month as Saudi Arabia makes a sharp 1 million barrels per day (Mb/d) voluntary output reduction. For 2023, global production is forecast to increase by 1.6 mb/d to 101.5 mb/d, as non-OPEC+ (Organization of the Petroleum Exporting Countries) expands by 1.9 mb/d.
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