Russia’s crude oil exports by sea reached the highest point yet this year in the last week of March, as weather conditions at Russia’s Pacific Port improved.
Bloomberg tanker tracking data shows that four-week average seaborne crude exports in the period to March 31 reached their highest level since November.
Russia agreed to cut crude oil exports throughout the first quarter as part of its role in OPEC+, which has been trying to keep control of the oil market. Under the agreement, Russia agreed to cut 300,000 bpd of crude oil exports during the first quarter. Actual four-week average shipments for the period ending March 31 came in at 3.47 million bpd—about 16,000 bpd more than promised under the OPEC+ agreement.
For the second quarter of this year, Russia has said it would now base its cuts on production rather than exports, which is more in line with the strategy employed by the rest of the OPEC+ members.
The U.S. administration has long insisted that its sanctions against Russia—which limit seaborne crude shipments out of Russia—are working. But Russia’s crude oil revenues increased to $1.9 billion in the week ending March 31. That’s up from $1.75 billion in the week prior. Meanwhile, the four-week average income rose to $1.74 billion a week.
Russia’s crude oil exports had been dampened somewhat after India’s refiners refused to accept delivery of 18 million barrels of crude oil due to sanctions relating to Russia’s state-run fleet owner Sovcomflot. But half of that crude oil—originally refused in India—has since made its way to China.
Meanwhile, U.S. sanctions do seem to be lifting freight costs for moving Russian crude oil, and are now 6-8% of the price of a barrel of crude.