Russia's crude exports plummet to lowest since start of Ukraine war

Russia’s weekly crude exports dropped significantly in the week leading up to July 7, the steepest decline since the start of the Ukraine conflict in 2022.

The four-week average also fell to its lowest point since February, Caliber.Az notes citing reports in foreign media.

This slump in shipments occurred without any apparent cause, such as maintenance work or weather disruptions. Export volumes decreased from the Baltic, Black Sea, and Pacific regions.

Improved compliance with OPEC+ output targets might reduce the crude available for export. From March to June, production decreased by approximately 360,000 barrels per day.

Increased refinery activity in early July, post-maintenance, could also have contributed to the reduction in shipments.

Rosneft PJSC and Lukoil PJSC, major crude exporters, plan to reduce combined shipments from Novorossiysk by about 200,000 barrels per day this month. This follows the resumption of operations at their Tuapse and Norsi refineries.

The total value of Russia’s crude shipments fell in the week of July 7. However, the impact was softened by a fourth consecutive weekly increase in oil prices.

Overall, crude shipments dropped by about 990,000 barrels per day to 2.67 million.