Russia’s revenues from oil and petroleum products exports fell sharply in February under pressure from Western sanctions against the Russian oil industry over the war in Ukraine. This is reported by the International Energy Agency (IEA) in its monthly oil market report.
The West has imposed a price cap on Russian oil, while the European Union has boycotted oil imports from Russia via tankers.
According to the IEA, Moscow’s revenue from international oil trade was $11.6 billion last month. That is a more than 40 percent decrease compared to a year earlier. In February, the average export of oil and petroleum products from Russia was 7.5 million barrels daily. That is the lowest level since September, according to the IEA.
Therefore, the agency says Russia has received “a hit” in revenue from Western sanctions. Russia is now selling more oil to countries in Asia and South America, but buyers there are negotiating considerably lower prices thanks to those sanctions. Companies are not allowed to participate in the transport of oil from Russia if that oil is sold for more than $ 60 a barrel. This mainly concerns shipping companies and insurers.
The IEA further reported that supply in the global oil market exceeds demand. This is partly because demand is under pressure due to concerns about a recession, while Russian oil production remains reasonably stable. As a result, the agency expects a surplus in the oil market for the first half of this year.