Russia’s oil exports are surging to their highest levels in nearly four months, defying commitments to reduce production by 300,000 barrels a day through the end of the year. According to Bloomberg data, Russia shipped around 3.48 million barrels of oil a day in the four weeks ending November 5, slightly higher than the previous four-week period, marking one of the highest shipping volumes since July.
Despite promising to extend its 300,000 barrel-a-day production cut as part of efforts to boost oil prices with Saudi Arabia, Russia has actually only cut its crude exports by a third of that amount, leaving the rest of the promised deficit to be made up by cutting exports of refined oil products, such as diesel.
At the same time, the price of Brent crude, the international benchmark, continued to decrease, trading 2.5% lower at $83 a barrel on Tuesday, while US oil prices fell below $80 for the first time since August.
The increase in oil exports has contributed to a surge in Russia’s oil and gas revenue, with total revenue from oil and gas exports reportedly reaching its highest level since April 2022. However, economists have raised concerns about the strain on Russia’s economy due to sanctions and broken trade ties since its invasion of Ukraine in 2022. The nation has also planned a record-high military budget for 2024, putting future growth at serious risk, according to the Carnegie Endowment.
Overall, while Russia’s oil exports have been a boon for its war revenue, the situation is casting a shadow over the nation’s economic stability and prospects for growth.
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