Russian Oil Exports Hit 19-Month Low in July

The export of Russian oil from key western ports fell to a 19-month low in July, contributing to an overall decline in global seaborne oil flows, which decreased by about 586,000 barrels per day last month, according to Bloomberg.

Total supplies to China dropped by more than 1.4 million barrels per day, marking the largest decline this year, although these figures may still change.

Increased supplies from leading exporters such as Saudi Arabia and the United States helped offset the declines from Russia, Brazil, Venezuela, and Qatar.

Russian exports, primarily of Urals oil from the Baltic ports of Primorsk and Ust-Luga, and Novorossiysk on the Black Sea, fell to almost 1.8 million barrels per day in July, down from 2.2 million barrels in June.

Russia continues to meet its oil production obligations within OPEC+ and has increased domestic oil refining, potentially reducing the amount of oil it exports. A separate analysis showed that total seaborne oil exports from Russia were the lowest in nearly a year, with shipments from Baltic ports being the lowest since December 2022.

The oil industry remains a crucial source of revenue for the Russian budget, which is burdened by high military and social costs amid the ongoing war against Ukraine, now in its third year. Despite imposed restrictions, Russia continues to generate income from energy exports, financing the war.

For more on what Ukraine needs to do to halt the aggressor's energy "blood flow," read Volodymyr Omelchenko's article, "Why Oil Refining in the Russian Federation is a Legitimate Goal of War," by the director of energy programs at the Razumkov Center.