- Russia’s crude and fuel export revenues fell to $10.97 billion in November the lowest since February 2022.
- Export volumes declined by 400,000 bpd as buyers reassessed risks from tighter sanctions and drone attacks.
- Urals crude fell sharply to $43.52/bbl, while Black Sea seaborne flows plunged 42%.
Russia’s oil revenues continued to slide in November, with the International Energy Agency reporting earnings of $10.97 billion, down $3.59 billion year-on-year. This marks the lowest monthly income since the start of the Ukraine invasion, reflecting the combined impact of weaker prices, lower shipments, and intensifying operational disruptions.
The country’s energy sector remains strained as Ukrainian drone attacks increasingly target refineries, pipelines, and tankers, adding to the drag created by Western sanctions.
Sanctions Bite as Buyers Pull Back
Washington tightened restrictions in October by imposing sanctions on major Russian producers Rosneft and Lukoil. The IEA said buyers reduced exposure as they evaluated the implications of the latest measures, leading to a 400,000 bpd decline in total crude and product exports, down to 6.9 million bpd in November.
As a result, Urals crude fell by $8.20, averaging $43.52/bbl, a level not seen since early 2022. The price slump further eroded export revenue despite Russia’s attempts to redirect shipments.
Black Sea Exports See Sharp Collapse
Seaborne exports through the Black Sea dropped 42% in November after a series of Ukrainian attacks on vessels operating within the “dark fleet.” The IEA noted that strikes on infrastructure and ships have heightened operational risk, adding another layer of uncertainty for traders and refiners using the route.
Production Declines While OPEC+ Quotas Missed
Russian crude production slipped to 9.03 million bpd in November, down from 9.24 million bpd the prior month. This puts output roughly 500,000 bpd below its OPEC+ quota for the month.
Meanwhile, Kazakhstan saw its production rise by 120,000 bpd, reaching 1.81 million bpd, which is 330,000 bpd above its own OPEC+ target.
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Source: Reuters
