Mon Sep 16 14:21:25 UTC 2024: ## Russia’s Oil Revenue Plummets to Seven-Month Low Amid Price Slump and Reduced Exports
**Moscow, September 12** – Russia’s oil revenue has plummeted to its lowest point in seven months, according to data from Argus Media cited by Bloomberg. The country’s crude export earnings dropped to $1.44 billion in the week ending September 8, down from $1.52 billion the previous week. This decline comes despite an increase in Russia’s daily oil production by 40,000 barrels.
The drop in revenue is attributed to a combination of factors, including falling oil prices and reduced oil exports. Global oil prices have been declining due to a weakening demand outlook, fueled by fears of a US recession. Meanwhile, US producers continue to pump record amounts of crude, further contributing to the price slump.
Russia’s flagship oil blend, Urals crude, has fallen to $67.61 a barrel, a 20% drop from its peak earlier this year. Additionally, Russia’s oil sales have decreased compared to previous years, with Asian customers buying less and pipeline disruptions to Hungary impacting exports.
The four-week average sales volume for Russian crude has fallen to 3.13 million barrels a day as of September 8, down 30,000 barrels a day from the previous monthly average. Specifically, Russian crude shipments to Asia, a key market, have dropped to an average of 2.92 million barrels a day, a 10% decrease compared to earlier this year.
The situation is set to worsen for Russia as it plans to make even deeper oil production cuts later in 2024, as part of OPEC’s efforts to increase global crude prices. The Energy Ministry announced plans to ramp up cuts in October and November, aimed at compensating for exceeding earlier production commitments. However, the exact extent of these cuts remains unclear.
This significant decline in Russia’s oil revenue highlights the growing pressure the country faces as it attempts to navigate global economic uncertainty and fluctuating oil markets.
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