The decline comes after Russia voluntarily slashed its oil output, data shows
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Russian oil exports dropped to their lowest levels in two years, with revenues also tumbling, a report by the International Energy Agency (IEA) published this month shows.
Moscow’s shipments of crude and petroleum products fell by 600,000 barrels per day (bpd) in June to 7.3 million bpd – the lowest level since March 2021, according to data. Export revenues nearly halved last month to $11.8 billion, compared to $20.4 billion in June 2022.
The agency suggested in its monthly Oil Market Report, however, that Russian oil output in August may hold steady despite the announced production cut, due to a seasonal rise in demand in the domestic market.
A representative of Russia’s Energy Ministry told TASS news agency earlier that “supplies would be lowered in addition to earlier assumed commitments on the voluntary production cut.”
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In February, Russia pledged to voluntarily cut oil production by 500,000 bpd starting in March. The move followed a Western-imposed price cap of $60 a barrel, which Moscow views as a non-market mechanism and considers unacceptable.
Earlier this month, Russia announced further cuts of 500,000 bpd starting in August following a similar move by Saudi Arabia. Riyadh said it would extend its voluntary crude output cut of 1 million bpd for another month to include August. The cuts will amount to 1.5% of global supply.
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