Russia earns more despite lower oil exports in June, IEA says

Russia’s oil exports rose back above $20 billion in June despite lower shipments abroad because of a rally in energy prices, according to the International Energy Agency.

That was an increase by $700 million from a month earlier, even as Russia’s daily exports of crude-oil and products fell by 250,000 barrels to 7.4 million barrels, the lowest since August, the IEA estimated in its monthly report published on Wednesday. 

Benchmark Brent averaged more than $117 a barrel last month as the global oil market remained tight. High international prices helped to partially offset the discount for Urals crude, which deepened amid the European Union’s preparations to gradually phase out seaborne oil imports from Russia in response to the invasion of Ukraine. 

In June, the Urals price rose 10.7% from previous month and averaged $87.25 a barrel, according to Russia’s Finance Ministry. Still, a stronger ruble meant Russia’s budget, over a third of which comes from oil and gas, didn’t reap the full benefits from higher crude. The ruble gained more than 15% against the dollar in June amid a flood of export revenue and lower imports. 

As a result, the Kremlin’s oil and gas revenue fell almost 18% from May to 717.9 billion rubles ($11.7 billion) last month, the lowest since August, according to Bloomberg calculations based on Finance Ministry data. 

In June, Russia’s drop in exports was led by crude oil, which fell to just above 5 million barrels a day, the IEA said. Daily flows to the EU were below 3 million barrels, the lowest since November.

Loadings to China and India fell by 175,000 barrels a day each compared to May, but higher volumes to “unknown” made the overall picture of exports to Asia unclear, the IEA said.