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Russia’s Crude Oil Exports Reach Highest Level in 11 Months in April, Surpassing OPEC Target to Boost Prices

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Russia's crude oil exports at 11-month high in April, crosses OPEC target to support prices

In the latest developments, Russia’s crude oil exports have reached an 11-month high in April, exceeding the target set by the OPEC alliance to support prices.

The flows of seaborne crude from Russia surged to 3.95 million barrels a day in the week to April 14, the highest since May 2023. The four-week average also saw a significant increase, reaching 3.66 million barrels a day, the highest since June.

The rise in exports, along with higher Urals crude prices, led to an increase in Moscow’s oil earnings. The gross value of crude exports jumped to $2.15 billion in the seven days to April 14, up from $1.82 billion previously. The four-week average income also saw a substantial rise, reaching $1.92 billion a week.

Shipments to Asia continued to climb, with a significant portion heading to China and India. The backlog of Russia’s Sokol crude, which had built up due to rejections by Indian refiners, has now almost disappeared. Deliveries have been redirected to China and India, with only a small amount of barrels awaiting a destination.

In terms of destinations, European countries have stopped receiving Russia’s seaborne crude exports, with Turkey being the only short-haul market remaining. Exports to Turkey were stable at 323,000 barrels a day in the four weeks to April 14.

The increase in Russia’s crude oil exports comes as the country aims to comply with the production targets set by the OPEC alliance. Export duty on Russian crude was abolished at the end of 2023 as part of the country’s tax reform plans.

Overall, the rise in crude oil exports from Russia signals a significant shift in the global oil market dynamics, impacting both prices and supply chains across the world.

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