Shipments of Russian oil from key ports saw their biggest drop in July in 20 months.
Points of attention
- Russian oil exports experienced a significant decline in July, attributed to sanctions and changing market dynamics.
- The drop in Russian oil shipments to key ports reflects a strategic shift towards alternative sales markets and efforts to comply with OPEC+ quotas.
- Sanctions against Russian oil have played a crucial role in reducing exports to the West, prompting Russia to explore new markets, particularly in Asia.
- India emerged as a key buyer of Russian oil, with imports reaching record highs in May, spurred by a decline in Chinese demand.
- Russia is actively focused on improving its oil refining capabilities and meeting OPEC+ targets to address the challenges in the market and restore stability.
What caused a sharp drop in Russian oil exports
According to the journalists of the publication, deliveries of Russian oil from key ports in the west of the aggressor country have decreased to the lowest level in the last 19 months.
Total oil exports from Russia experienced the biggest drop since the beginning of the year.
It is emphasized that in July the total volume of Russian oil supplies decreased by approximately 586,000 barrels per day.
The most noticeable reduction in supplies, by 1.4 million barrels, occurred to China.
It is noted that the reduction in oil supplies from Russia, Brazil, Venezuela and Qatar was partially offset by exports from the USA and Saudi Arabia.
Journalists of the publication note that the total sea export of Russian oil in July was the lowest since the beginning of the year.
At the same time, shipments from Baltic ports fell to the lowest level since December 2022.
It is noted that Russia is trying to improve the performance of production targets in OPEC+ and is working to restore its own oil processing.
Sanctions against Russian oil are an important pressure tool used by Western countries to limit Russia's financing of the war against Ukraine.
These sanctions led to a significant decrease in Russian oil exports to the West, forcing Russia to look for new sales markets, particularly in Asia, or ways to circumvent the sanctions.
What is known about the key buyers of Russian oil this year
India's oil imports from Russia rose to a record 2.1 million barrels per day in May. This is due to the decrease in China's demand for Russian oil.
Imports of Russian oil to India in May grew by 14.7% compared to April and by 5.9% compared to last year.
