Oil prices have risen sharply amid the conflict in the Middle East, allowing Russia to boost revenues despite Ukrainian drone strikes on Russian export infrastructure.
Points of attention
- Russia's oil revenue has hit its highest level since June 2022, benefiting from soaring oil prices driven by conflicts in the Middle East.
- The Iran conflict and the blockade of the Strait of Hormuz have pushed global oil prices to record highs, further boosting Russia's profits from oil sales.
Russia receives maximum profits from oil sales
Russia is earning more from oil exports than at any time since the war in Ukraine began, helped by soaring prices and increased supplies. The total value of exports has reached its highest level since June 2022.
In the four weeks to April 5, exports averaged $2.02 billion per week, the highest level since June 2022.
Prices for Russian Urals crude rose for the fifth week in a row, reaching $116 per barrel, the highest level in 13 years.
Global oil prices have surged to multi-year highs due to the war in the Middle East. Iran's virtual closure of the Strait of Hormuz has blocked the supply of more than 12 million barrels of oil per day from the Persian Gulf region. This has bolstered demand for Russian oil.
However, the Kremlin is prevented from taking full advantage of high prices by Ukrainian drone strikes on export ports on the Baltic and Black Sea coasts. In particular, oil supplies from the port of Ust-Luga have been blocked for more than a week after the attacks.
Meanwhile, a brief truce in the conflict with Iran, announced on April 7, has sent oil prices plummeting. If the deal holds and supplies through the Strait of Hormuz resume, Moscow's revenues could shrink.
According to vessel tracking data, Russia loaded 20.88 million barrels of oil on 28 tankers in the week to April 5. This is a significant increase from 16.62 million barrels on 22 vessels the previous week. Deliveries averaged 2.98 million barrels per day.
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