Russian crude oil prices have fallen to their lowest level since the start of the full-scale war in Ukraine.
This is reported by Bloomberg.
On average, Russian oil exporters are getting just over $40 per barrel for cargoes shipped from ports on the Baltic and Black Seas and the eastern port of Kozmino, according to Argus Media.
That’s down 28% from three months ago. Recent restrictions targeting oil giants “Rosneft” and “Lukoil” have pushed the discount even further.
Growing Western pressure on the Russian oil trade is making it increasingly difficult to sell and deliver, with measures also targeting refineries in key buyer countries, including India. Global benchmark oil prices are also falling, falling below $60 a barrel on December 16 for the first time since May.
Russiaʼs oil revenues are crucial to financing the war — together with gas revenues, they provide about a quarter of the countryʼs state budget. The decline in revenues is straining the finances of oil companies and reducing the amount of taxes flowing into the Kremlinʼs coffers.
Indian officials said they expect imports from Russia to be around 800 000 barrels per day this month, down significantly from November, though still substantial. A Chinese refiner recently bought a shipment of crude from Russia’s eastern ports at the biggest discount this year. The two Asian countries are the main buyers of Russian oil.
- The US President Donald Trump signed sanctions against two of Russiaʼs largest energy companies, “Lukoil” and “Rosneft”, on October 23. The sanctions were supposed to take effect on November 23, but on November 15, the restrictions against “Lukoil” were postponed until December 13.
- Reuters predicts that Russiaʼs oil and gas revenues will halve in December and reach their lowest level since August 2020.
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