Russia's Oil Export Revenues Drop to Near Five-Year Lows

Russia's revenue from crude oil and oil product sales fell by $920 million between July and August, dropping to $13.51 billion. The International Energy Agency reported that these figures represent some of the lowest revenue levels since 2022, attributing the decline to reduced export volumes, Western sanctions, and Ukrainian drone strikes on refineries and pipelines.

Market pressures further strained revenues as the Urals oil blend price dropped to approximately $56 per barrel, falling below the Western-imposed $60 price cap. The United States pressured India to cease purchasing Russian oil and imposed tariffs on India, forcing India to demand wider discounts of $3 to $4 per barrel. In response to the uncertainty regarding Indian buyers, Russia began offering Urals crude to Chinese buyers.

Russian crude output fell to 9.28 million barrels per day in August, with exports declining to 7.3 million barrels per day, aligning with OPEC+ quotas. Separately, the IEA reported Kazakhstan's crude oil supply fell to 1.8 million barrels per day due to export disruptions and a Black Sea terminal spill, although Reuters calculations suggest output actually rose to 1.88 million barrels per day.