Russia’s seaborne oil exports hit a wartime record in June, but revenue sinks to three-month low
In June, Russia’s seaborne crude oil exports reached a wartime record, yet export revenue fell to its lowest level in three months.
According to Bloomberg, Russia’s seaborne crude oil exports in June hit their highest level since the start of the full-scale invasion of Ukraine. Over the four weeks from June 1 to June 28, Russia exported 4.13 million barrels per day by sea. That is not only a wartime record but also 780,000 barrels per day higher than the first-quarter average.
The high volume of Russian exports helps sustain global oil supply while shipments from the Persian Gulf face disruptions. The increase also comes amid intensified Ukrainian drone attacks on oil facilities across Russia. Bloomberg suggests that because of these strikes, Russia is sending more of its unrefined oil abroad.
However, Russian export revenue is not keeping pace with the higher shipment volumes. Prices for Urals, Russia’s main export grade, dropped sharply in line with global benchmark crudes amid hopes that the temporary ceasefire between the United States and Iran will become permanent.
The jump in shipments has driven a record buildup of oil at sea — 133 million barrels, 34% more than in mid-April. Tankers are beginning to gather off the coasts of Egypt and Singapore. That, Bloomberg says, could signal that Moscow is struggling to find buyers for its crude.
The rise in shipments hasn’t been enough to offset falling prices. Russia’s foreign-currency revenue from exports has fallen to $1.9 billion a week, its lowest level since March.
