According to the International Energy Agency, Russian oil exports increased to their highest level in almost three years in March. However, profits were down acutely from the last year.
Since Russia’s invasion of Ukraine in February 2022. The West has set a raft of sanctions against Russia. Including price caps on its crude and oil products and EU embargoes.
Russia responded by cutting production by 500,000 barrels per day. And its OPEC+ colleagues shocked the markets earlier this month by announcing their output cuts.
However, the IEA said that overall Russian oil exports increased by 600,000 barrels per day to 8.1 million barrels per day in a month. While Russia’s oil profits increased by $1 billion to $12.7 billion, they remained 43 percent lower than a year ago.
According to IEA, much of the gain was attributed to an increase in oil product exports, which increased by 450,000 barrels per day to 3.1 million barrels per day, returning to pre-Covid levels.
Crude exports increased by 100,000 barrels per day to five million barrels per day in March, with India replacing China as the biggest Asian destination for Russian shipments.
A slew of reports projecting the market’s supply-and-demand projections released this week is also being closely watched. The Organization of Petroleum Exporting Countries’ report forecasts that markets will be deeply undersupplied this year. In contrast, the US Energy Information Administration projected supplies exceeding demand both in 2023 and 2024.
Crude has rebounded more than 20% since hitting a 15-month low in March. In the latest sign that China’s demand is increasing, the largest crude importer shipped in the most oil in almost three years in March.
Last week’s surprise production cut announcement from OPEC+ lifted prices the most in a year, punishing speculators that had bet oil prices would fall.
