Russian crude exports from key western ports plummeted to a 19-month low in July, significantly impacting global seaborne oil flows, according to tanker-tracking data compiled by Bloomberg. The decline in Russian exports played a crucial role in the overall decrease of global shipments by approximately 586,000 barrels per day last month.
Russian oil exports significantly fund Moscow’s war efforts against Ukraine, despite Western sanctions aimed at curtailing these financial streams. These profits are facilitated by a shadow fleet of tankers that helps bypass restrictions, pointing to a significant challenge for sanctions enforcement.
The Bloomberg data reveals that Russian Arctic exports remained relatively stable, with a minor decrease of 2,000 barrels per day. Russian Pacific exports saw a slight increase of 36,000 barrels per day. However, the exports of Urals and Siberian Light crude oils experienced a significant drop of 435,000 barrels per day.
Bloomberg reports that Russian exports, primarily of the flagship Urals grade, from the Baltic ports of Primorsk and Ust-Luga, and Novorossiysk on the Black Sea, dropped to almost 1.8 million barrels a day in July. This marks a substantial decrease from the 2.2 million barrels per day observed in June.
According to Bloomberg, the significant reduction in Russian exports is attributed to two main factors. Firstly, Russia has been improving its compliance with its OPEC+ output target, aligning its production with agreed-upon levels. Secondly, the country is experiencing a recovery in domestic refining, which could be reducing the amount of oil available for export.
Russian refineries and fuel depots are frequent targets of the attacks by Ukrainian drones.
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