IEA: Russia increased revenues from oil exports by $1.8 billion in September

Russia increased its oil export revenues by $1.8 billion in September to $18.8 billion, the highest since July last year, the International Energy Agency (IEA) said in its monthly report. report.

“Russia’s oil export revenues increased by $1.8 billion to $18.8 billion in September, which was the highest level since July 2022,” the materials say.

Total oil exports increased by 460,000 bbl/d after falling by 150 bbl/d in August to 7.6 million bbl/d. Crude oil exports increased by 250,000 bbl/d. The weighted average price of Russian oil increased by $8 to $81.8/barrel, and the Urals discount to North Sea Dated (Brent) was the lowest since March 2022, $12.20/barrel.

Global oil production rose by 270,000 bbl/d in September to 101.6 million bbl/d, driven by higher production in Nigeria and Kazakhstan. The conflict between Israel and Hamas did not have a direct impact on oil flows, the IEA emphasized. At the end of the year, global oil demand will increase by 2.3 million barrels per day to 101.9 million barrels per day. Next year, the IEA expects demand growth to slow to 900,000 bbl/d.

October 11, Russian President Vladimir Putin signed decree on the mandatory sale of proceeds in foreign currency received by individual Russian exporters under foreign trade agreements. The measure is aimed at increasing the transparency and predictability of the foreign exchange market. The decree defines a specific list of 43 exporters related to the sectors of the fuel and energy complex, ferrous and non-ferrous metallurgy, chemical and forestry industries, and grain farming, which will be affected by these measures. For them, mandatory repatriation and sale of foreign currency earnings on the Russian market are introduced for six months.

As Vedomosti previously wrote, the government raised the forecast export price of Urals oil for the next three years. According to the explanatory note to the draft federal budget for the next three years, the average export price for Russian oil in 2023 will be $63.4/barrel. The price forecast for 2024 has been increased by 6% compared to the parameters of the current federal budget for 2023–2025. to $71.3/barrel, for 2025 the price increased by 8% to $70.1/barrel. In 2026, the government expects the Urals price to be $70/bbl.

On September 5, Russia announced that the reduction in oil exports by 300,000 barrels per day would be extended until the end of 2023. Novak explained then that the reduction volumes would be adjusted monthly “depending on the situation on the global oil market.” From March of this year until the end of 2024, the Russian Federation is also voluntarily reducing oil production by 500,000 barrels per day. In addition, in August Russia decided to reduce exports by 500,000 barrels per day, in September – by 300,000 barrels. This reduction does not apply to agreements under the OPEC+ deal.