Russian seaborne crude oil exports fell to 3.71 million barrels per day in the four weeks to August 9, Bloomberg reported based on tanker tracking data. The shipment volumes dropped to their lowest level since late May as key ports on the Baltic Sea and Black Sea operated significantly below capacity. Russia relies on its oil and gas revenues to finance its war against Ukraine.
Bloomberg linked the lower export volumes to a temporary reduction in Ukrainian attacks on Russian oil refining infrastructure. That lull enabled Russia to partially restore refining operations and route crude oil to domestic refineries instead of shipping it abroad.
Refinery attacks and port disruptions
Ukrainian military strikes on oil refining facilities increased again in August. Ukrainian forces attacked five Russian refineries during the first week of August and struck two more refineries this week.
At the port of Novorossiysk, shipments last week remained at about half of their recent peak levels amid attacks on oil tankers near the harbor. Despite lower export volumes, average export revenue remained nearly unchanged at about $1.7 billion per week over the four-week period because crude prices rose.
Export prices for flagship Urals crude from the Baltic region rose by about $4.30 per barrel to $63.80, while Black Sea Urals prices increased by $4.10 to $62.70 per barrel. Prices for crude delivered to India rose for a third consecutive week, climbing by $6.10 to $83.33 per barrel.
Fuel shortages and export restrictions
In June, reports showed Russia was paying multi-billion compensation payments to its refiners, which reduced state oil and gas revenues. Long-range Ukrainian drone strikes on refineries subsequently caused domestic gasoline shortages, forcing Russia to cut fuel exports to Central Asian states while searching for extra supply sources.
According to Reuters estimates, Russian refineries met only about 65 percent of seasonal gasoline demand in early July. On July 30, the Russian government decided to extend its existing ban on gasoline and diesel exports for another six months.
